PM Adviser on Privatization Muhammad Ali has said that provincial government can not take part in national carrier PIA’s privatization process, adding that no talks are being held with the government of any country for privatization, privatization process will be completed in the last quarter of the current fiscal year, reported 24NewsHDTV Channel.
Talking to media in Islamabad, Muhammad Ali said the privatization of PIA through government-to-government purchase was not possible and the government was arranging roadshows in the Middle East for privatization of PIA.
The privatization advisor said companies participating in the bid must have cash or shares of Rs 30 billion. The bidder company must be audited by an international or State Bank approved audit firm. The conditions for PIA privatization have been amended and all demands of investors have been accepted, adding that 18pc GST on lease or purchase of aircraft has been abolished.
Privatization Advisor made it clear that the future of 6900 PIA employees was secure.
Muhammad Ali said privatization of PIA was good for both the airline and the national economy. He said the government will restore the London route before privatization of PIA. The PM adviser claimed that the company which will purchase PIA will get much higher profit than before as national carrier has a huge potential for higher profit than before, adding that PIA has been in continuous profit for several months.
The PM adviser said PIA was currently managing the repairments of for engines and aircraft itself. He said the government can also give more than 80pc shares of PIA to buyers. The PM adviser said national carrier's negative equity has now become positive.
He said PIA buyers will benefit from tax concessions for the next 5 years and PIA's buyer consortium can also change its leader once.
Muhammad Ali said PIA's financial position was improving day by day due to government restructuring. He said an increase in number of routes and reduction in deficit will increase bid amount. He said PIA bidders will be given 60 days to examine the accounts.
Muhammad Ali said PIA privatization has learned from past mistakes, a condition of a few years of revenue will be imposed on parties other than airlines. He said PIA bidding company must have 200 billion in revenue in 2 years.