ISLAMABAD: The government intends to privatise 26 per cent shares of PIA to strategic investors by the end of December, and hiring of financial advisers will be completed in March this year, reveals an official document.
In the meantime, PIA has been allowed to continue leasing more efficient airplanes and rationalising routes, according to the finance ministry document.
Financial advisers will also be hired for sale of PIA Investment Limited’s non-strategic assets in New York and Paris by the end of March.
The sale of Islamabad Convention Centre will also be finalised after finalisation of PIA Investment Limited.
The document presented to IMF says the government was developing medium-term action plans to restructure PIA, Pakistan Steel and Pakistan Railways.
A professional board for PS has already been appointed to hire financial advisers by March to prepare a comprehensive restructuring plan and seek potential strategic private sector participation in PS.
As far as Pakistan Railways is concerned, the document says the government is in process of reviving the railway board, and within next three months, a comprehensive restructuring plan would be developed which includes improvement in business processes and institutional framework, financial stability and service delivery.
On the public sector enterprises, the report says that the government was working towards reforming or privatising PSEs, focusing on limiting poor performance and improving public sector resource allocation. The Cabinet Committee on Privatisation has already approved a list of 31 PSEs, and has developed a plan to sequence the capital market and pre-privatisation restructuring for these entities.
The document says that the government has identified 11 entities which are listed in the technical memorandum of understanding in oil and gas, banking and insurance, and power sectors for block sales, and primary or secondary public offerings.
The government has hired one financial adviser and will hire two more by March to offer minority shares in three companies in domestic or international markets by the end of June 2014 to offer minority shares in three companies in domestic or international markets by the end of June 2014 subject to investor interest and global market conditions.
Moreover, financial advisers will also be hired for at least two other companies by the end of June this year to market minority shares within six months, according to the document.