Pakistan Stock Exchange (PSX) has issued a warning to Pakistan International Airlines of suspending share trading from May 22, 2019.
PSX stated that PIA has still failed to hold its Annual General Meeting (AGM) for the year ended December 31, 2017. Also, the deadline for holding the AGM for the year ended December 31, 2018, has also expired which was required to be held within 120 days from the date of closure of the financial year i.e. up to April 30, 2019.
The non-holding of AGM and non-submission of annual audited accounts for two consecutive years will result in the suspension of trading in its shares, said the PSX.
Moreover, the notification stated,
If such company fails to submit its annual accounts for two consecutive years, trading in shares of the company shall be suspended immediately by the exchange and the company shall be given 90 days to rectify the non-compliance, failing which the exchange shall initiate further actions against the company. Failing which trading in its (PIA) shares shall be suspended w.e.f (with effect from) May 22, 2019. Upon failure of the company to rectify its default within seven trading days i.e. by Friday, May 10, 2019, trading in the shares of the company shall be converted to SPOT (T + 0) settlement for the next seven days i.e. till Tuesday, May 21, 2019.
The stock exchange advised PIA to rectify its defaults till May 21, 2019, to avoid immediate suspension in the interest of investors.
PSX has already placed the loss-making airline in the defaulters’ segment with effect from October 10, 2018, for its failure to hold AGM and submit annual and audited accounts for the year ended December 31, 2017.
The Auditor General of Pakistan (AGP) in his report in October 2018, said that accumulated losses of Pakistan International Airlines Corporation (PIAC) up to December 31, 2017, were Rs. 360.117 billion.
However the Adviser to PIA CEO Air Vice Marshal Noor Abbas shared the news during an interview with a local newspaper that PIA has achieved breakeven at the operational level. It, however, may take three to four years to report a net profit.
The company has however failed to announce the financial results of the above mentioned period.