Here is the breakdown of the recent developments regarding the sale of Pakistan International Airlines (PIA):
The Valuation vs. The Reality: PIA was sold for a total of 135 Billion PKR. However, the national treasury and the public will only receive 10 Billion PKR.
Who is the Buyer?
The Arif Habib Group placed the winning bid of 135 Billion PKR, securing 75% of the shares of the national carrier.
Where is the remaining 125 Billion?
According to the deal, the Arif Habib Group will not pay the remaining 125 Billion PKR to the government. Instead, they will reinvest that money back into PIA to upgrade the airline.
Reports suggest that the group plans to use these funds to expand the current fleet, with a target of increasing the number of operational aircraft to 60.
The Remaining 25% Shares:
The Arif Habib Group has been given the "First Right of Refusal" for 90 days. This means they have the first option to buy the remaining 25% shares of PIA if they pay an additional amount to the government.
The Government’s Stance:
The Government of Pakistan claims this deal saves the country from a 35 Billion PKR loss that the airline was causing to the national exchequer annually.
The Public Concern
The speaker in the video highlights a critical point: PIA belongs to the people of Pakistan. While the airline is being "sold" for a massive sum, the actual cash entering the national treasury is significantly lower than the headline figure.
What do you think about this deal? Is reinvesting the majority of the bid amount back into the company a smart move for the airline's future, or should the cash have gone directly to the public treasury?
Share your thoughts in the comments below!