IMF greenlights government’s plan to privatize PIA

Following successful negotiations between the government of Pakistan and the International Monetary Fund (IMF), the latter has approved the former’s plan to privatize the Pakistan International Airlines (PIA), reported 24NewsHD TV channel on Tuesday.

Sources in the Privatization Commission told 24News that the development came after talks between the Ministry of Finance and Privatization Commission officials with their counterparts in the IMF.

They disclosed that under the agreement, the privatization of the state-owned entity was to be completed within one year after which the loan repayment plan would be drawn up.

Sources revealed that in order to facilitate the airline’s privatization, the Fund had also okayed the loan rescheduling plan.

However, the sources added, it would be the federal cabinet that would finally approve the rescheduling plan.

They disclosed that the IMF had agreed that on Rs280 billion borrowed by the PIA in loan, the government would pay markup to banks at the rate of 12 per cent for a period of one year.

Furthermore, they told 24News that talks with the international money lender on the loan rescheduling plan would continue during the ongoing week.  

Reporter: Waqas Azeem