ISLAMABAD: The National Assembly was informed on Thursday that the Financial Advisory Services Agreement for the privatisation of Pakistan International Airlines was signed in November 2023 with EY Consulting LLC, Dubai, at a total fee of $6,878,800. Out of this total, $6,269,800 was allocated as a retainer fee, while $609,000 was earmarked for out-of-pocket expenses. Providing details in a written reply during the Question-Hour, the Ministry of Privatisation said that $4,327,001 has been paid to the financial adviser so far, while $2,551,799 remains outstanding.
The written response was provided to a question by Sehar Kamran, who sought the details of PIA’s privatisation process, including its timeline, key milestones, stages as of September 15, 2024, and the total expenditures, such as consultancy fees, legal costs, and related expenses. She also asked about additional costs expected to complete the privatisation process.
According to the details: $626,980 (10%) was paid for the submission and approval of the project charter and execution; $940,470 (15%) was paid for the submission of the draft updated restructuring report, segregation plan, and the draft scheme of arrangements; $313,496 (5%) was paid for the approval of the updated restructuring report and segregation plan; $626,980 (10%) was paid for securing SECP approval on the scheme of arrangements; $940,470 (15%) was paid for publishing the Expression of Interest (EOI), submission of the information memorandum, RSQQ, SQ, and conducting roadshows; $626,980 (10%) was paid for the approval of the transaction structure.
Payments pending or invoices not yet submitted include: $313,490 (5%) for the pre-qualification of bidders by the Privatisation Commission (PC) Board; $313,490 (5%) for finalising and issuing bidding documents to pre-qualified bidders; $626,980 (10%) for determining the reference price, completing the bidding process, and approving the successful bidder by the federal cabinet; $626,980 (10%) for signing agreements with the successful bidder and achieving financial closure; $313,490 (5%) for finalising the roadmap for assets and liabilities after the scheme of agreement.
The ministry explained that the total cost to complete the privatisation process will depend on whether the Pakistan government opts for a government-to-government (G2G) transaction or reopens the process to private investors with a revised transaction structure. The Ministry of Privatisation provided the following timeline:
Sell-side due diligence: November 2023-January 2024; cabinet approval of restructuring, legal segregation plan, and transaction structure: February 2024; Filing of Scheme of Arrangement (SOA) with SECP: March 2024; Invitation of EOI for the acquisition of 51-100% equity of PIA along with management control: April 2024; Approval of SOA by SECP: May 2024; Pre-qualification of interested parties (6 bidders pre-qualified): June 2024; Initial buy-side due diligence: June - September 2024; Pre-bid meetings/conferences with bidders: July - Septem
Meeting was attended by CDA members, DG Resource Wing, ED Capital Hospital and the relevant senior officers
Mian Saleem, who was placed in list of most wanted terrorists, was accused by FIA of blackmailing Judge Arshed Malik
Senator Mohammad Abdul Qadir advocated for creation of authority to regulate and promote Pakistan’s mineral industry
Speaker advocated collective approach to strengthening democratic and parliamentary institutions across Pakistan
Both discuss matters of mutual interest, and agreed to enhance trade and cultural ties between two friendly countries
Establishment Division issued official notification regarding appointment of DG Rangers Sindh MG Muhammad Shamrez
