ISLAMABAD: The Privatization Commission announced on Friday it had endorsed the appointment of a British conglomerate to assist with the privatization of Pakistan International Airlines (PIA) which has been struggling to stay solvent and provide smooth service to people for several years.
The national flag carrier canceled hundreds of domestic and international flights in recent weeks due to the financial crunch that made it increasingly difficult for it to continue its operations following the Pakistan State Oil’s decision to suspend fuel supply due to unpaid dues.
“The Privatization Board meeting, chaired by the federal minister for privatization Fawad Hasan Fawad, has concluded,” said an official statement circulated in Islamabad. “It approved the appointment of the financial adviser for the privatization of the PIA Corporation. A consortium led by Ernst & Young was declared the successful bidder.”
The statement added the board also appreciated the transparency of the procedure involved in making the selection.
PIA has received frequent financial bailouts in the past.
However, the country’s current interim administration refused to rescue it in August without a workable strategy to turn it into a viable business entity.
Last month, the government finally approved Rs8 billion ($28.8 million) financial support for the airline, giving the airline management hope that its flight operations would gradually normalize after getting the financial boost.