ISLAMABAD: The Privatisation Commission Board on Friday granted approval for the appointment of a Financial Advisor (FA) for the divestment of Pakistan International Airlines Corporation (PIACL).
The Privatisation Commission Board meeting, chaired by Federal Minister for Privatisation Mr. Fawad Hasan Fawad, held in the federal capital, also addressed the extension of the Financial Services agreement with the Financial Advisor for the Privatisation of House Building Finance Corporation Limited (HBFCL) and the revival of the Financial Services agreement with the Financial Advisor for the Privatisation of First Women Bank Limited (FWBL).
The committee extensively discussed issues related to the long-pending privatisation of Pak China Fertilizer Limited, spanning 35 years.
Eight interested parties submitted technical and financial proposals for the role of Financial Advisor in the privatization of PIACL. Following the established criteria, the evaluation committee declared the consortium led by Ernst & Young as the “Top Ranked Interested Party.” The board formed a negotiating committee and assigned it the task of finalizing the financial services agreement with the top-ranked bidder.
The Financial Services agreement for the Privatisation of HBFCL had expired in January 2023, and the board approved a 24-month extension. Additionally, approval was granted for the revision of costs due to additional work required from the Financial Advisor.
Similarly, the Financial Services agreement for the Privatisation of FWBL had expired in April 2023, and a 24-month extension with a price adjustment for the changed scope of work was approved. The board decided to investigate and fix responsibility for the delays in the privatisation of both HBFCL and FWBL.
Considering the issues and litigation in the privatisation of Pak China Fertilizer Limited, the board directed the sharing of details of all proceedings since the initiation of the privatisation contract at its next meeting.
The board resolved to determine the factors behind the Privatisation Commission’s changing stance multiple times, despite the arbitration award decision in 1997. A final stance for presentation to the court will be formulated in the next meeting after considering all relevant details.
