Amidst a push for privatisation, shareholders of the Pakistan International Airlines Corporation Limited (PIACL) on Saturday endorsed the transfer of operations to the newly formed PIA Holding Company Limited (PIAHL).
The annual extraordinary general meeting, convened with key stakeholders in attendance, including government officials and financial experts, saw an overwhelming majority in favor of the proposal.
The deliberations centered on the proposed transfer of operations from PIACL to PIAHL, with shareholders engaging in extensive discussions weighing the potential benefits and risks associated with the strategic move.
Notably, the meeting highlighted the recent turnaround in PIA's financial performance, with the company reporting operating profits for the first time in thirteen years. This remarkable achievement was attributed to strategic initiatives implemented by the administration in response to shareholder feedback.
Amidst the positive momentum, shareholders also celebrated a remarkable 700% surge in PIA's business, signaling renewed optimism and confidence in the airline's prospects. The imminent commencement of operations in Europe and Britain from June 2024, following the successful completion of the International Aviation Safety Assessment (IASA) audit, further underscores PIA's commitment to global expansion and service excellence.
The government's steadfast commitment to PIA's revival was palpable throughout the meeting, with senior officials actively participating to ensure stringent measures were in place for the airline's improvement.
The restructuring of PIA into two distinct entities — PIA Corporation and PIA Holding — marks a significant milestone in the privatization process. Under the purview of this restructuring, PIAC will oversee flying operations while PIA Holding will manage other assets and liabilities.
The government, in line with recommendations from global financial advisory firm Ernst & Young, is also exploring measures such as a voluntary retirement scheme and the phased retirement of employees to streamline operations and enhance efficiency.
It is noteworthy that the reconstitution of PIA's board of directors, which had been inactive since October 2023, has recently been approved by the federal cabinet.
