The cash-strapped Pakistan International Airlines (PIA) has an urgent need for $600 million, as revealed on Thursday at a meeting presided over by Caretaker Federal Minister for Privatisation Fawad Hasan Fawad.
According to those with knowledge of the situation, Ernst & Young, the financial advisor for the divestiture of PIA, forecasted the airline’s urgent liquidity needs of $600 million in the business plan that was submitted before the meeting.
The suggested strategy addressed the airline’s short- and medium-term fleet and capital needs to become a profitable, internationally competitive airline.
Before submitting the proposal for the federal cabinet’s approval, the minister suggested additional rationalisation of the predictions. The business strategy, valuation technique, legal segregation plan, and transaction structure would all be presented to the federal cabinet for final approval.
According to further sources, the $600 million capital expenditure demand is only needed for a five- to six-year timeframe. The ultimate amount may differ significantly based on additional plan development.
