KARACHI – Pakistan Air Force is set to purchase Engineering Unit of the country’s national air carrier Pakistan International Airlines as the government is looking to offload stake in debt-ridden airline.
A report shared by English Daily claimed that Sharif-led federal government decided to sell Precision Engineering Complex (PEC) to the Pakistan Air Force (PAF) for Rs6.5 billion.
Engineering Unit has already been separated from airline’s core operations, and has already been separated from core operations of the airline.
It was learnt that the amount will be paid in 5 years, with Air Force dealing in pension obligations for current and former personnel.
In this regard, a ministerial committee already okayed transfer of PEC to Air Force, and a formal summary is being prepared for final nod of cabinet. This decision is part of government’s efforts to divest non-core assets and streamline operations within airline.
As per reports, PEC’s assets valued at Rs1.2 billion as of December 2023, but the company is burdened by liabilities amounting to Rs2.9 billion, leaving it with negative equity of Rs1.73 billion.
The move comes on the heels of the government’s failed attempt to privatize PIA in October, which saw most bidders withdraw due to financial concerns and the government’s refusal to meet their demands.
Loss-Making PIA to be sold to Qatar, UAE?
After a failed auction bid, reports claimed Pakistan International Airlines (PIA) is likely to be sold to a foreign government.
The government is desperate to offload 51-100% stake in airline to raise funds and meet requirements of a $7 billion IMF program. Qatar or Abu Dhabi are potential buyers under a government-to-government agreement.
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