ISLAMABAD: Privatisation Commission is said to have agreed with a plan submitted by Pakistan State Oil (PSO) on settlement of payables of Pakistan International Airlines (PIA).
According to the plan, a clean asset transfer, in the form of Islamabad real estate plot with an estimated value of Rs 15 billion from PIA to PSO whereas an amount of Rs 7 billion to be transferred on the books of the PIA’s operational company with a clear understanding and timelines for the recovery of this amount which should be stipulated in the SPA with the prospective investor subject to concurrence of the Finance Division and Aviation Division.
However, PC has made any comment on the proposal about transfer of remaining Rs 6 billion to the books of PIA Holding Company. PSO has proposed imposition of a levy or Cesss of Rs 3-4/ litre on the aviation fuel(JP-1) so as to ensure recovery in 2-23 years.
PSO, Board of Management (BoM, has recently been informed that a reply has been sent, wherein, the PSO has disagreed with the proposal of parking its legitimate receivables in a holding company since it is not only difficult for PSO being a public listed company but is also a severe detriment to the company’s interests.
Furthermore, the correct figure of receivables from the PIACL has been apprised along with the expression of willingness to explore viable options and negotiate a settlement of outstanding dues including; (i) cash; (ii) Pakistan Investment Bonds (PIBs); (iii) percentage of equity share in the liability-free new company; and (iv) asset transfer, the sources added.
Managing Director PSO Amir Hayat has floated the option of imposing Rs3-4/litre levy on Jet-A1 to recover the amount of Rs 6 billion within three years’ period.
BoM has concurred and unanimously endorsed/approved management’s decisions of (a) not agreeing with the proposal of parking PSO’s legitimate receivables in a holding company and (b) exploring viable options and negotiating a settlement of outstanding dues against cash, PIBs, percentage of equity share, asset transfer or imposition of a levy on Jet-A1.
Ends
