The federal government will privatize Pakistan International Airlines (PIA) before signing a new deal with the International Monetary Fund (IMF), sources from the Privatization Commission told ProPakistani.
Sources confirmed that the decision to privatize PIA is being expedited and will adhere to all IMF terms and conditions.
They said the PIA sale is a prerequisite for a new IMF loan program and will be completed before authorities seek a bigger bailout with the Washington-based lender.
Sources mentioned that a Letter of Intent (LoI) for the privatization of PIA could be issued by June, paving the way for its completion till up to July 2024.
PIA now has a debt pile somewhere in the region of Rs. 700 billion. The airline owes as much as Rs. 270 billion to commercial banks.
Sources added that approximately 350 government entities, including PIA, the Federal Board of Revenue (FBR), and Pakistan State Oil (PSO), are also facing insolvency.