In a significant development, the Board of Directors of Pakistan International Airlines (PIA) has given the green light to the federal government’s proposal to privatize the national flag carrier. Following a rigorous 4-hour meeting, high-level sources confirmed the decision, marking a pivotal step in the airline’s future trajectory.
Sources privy to the discussions revealed that deliberations primarily revolved around the fate of PIA employees, with considerations for those nearing the end of their tenure. Suggestions were made to implement a retirement plan for employees with four years remaining on their service, alongside the introduction of a voluntary retirement scheme ahead of the privatization process.
During the meeting, the PIA board received a comprehensive briefing on the findings of a report compiled by Ernst & Young, the appointed financial advisor for the airline’s privatization. The insights provided in this report likely played a crucial role in informing the board’s decision-making process.
It is noteworthy that the PIA board had been inactive since October 2023, until the recent constitution of a new board of directors, approved by the federal cabinet. According to regulations set forth by the Securities and Exchange Commission of Pakistan (SECP), board endorsement is essential for pivotal decisions concerning the future of PIA.
Earlier this week, PIA announced a restructuring of its board of directors, with the addition of five new members. This move underscores the airline’s commitment to governance reform and strategic planning in alignment with the broader objectives set forth by the government.
The approval of the privatization plan marks a significant milestone in PIA’s journey, signalling a new chapter in its operations and governance structure. As the airline prepares to embark on this transformative path, careful considerations will be made to ensure a smooth transition that prioritizes the interests of all stakeholders involved.