Pak govt expedites PIA's privatisation; prepares framework for division of assets and liabilities
Islamabad (PTI): Cash-strapped Pakistan is expediting the privatisation process of its ailing national flag carrier, PIA, and has prepared a framework for the division of its assets and liabilities as part of the move, according to a media report on Monday.
The government has disclosed that the total value of the assets of Pakistan International Airlines (PIA) is Rs 171.43 billion. Once the privatisation process is completed, the PIA’s assets along with its liabilities will be divided between the holding company and the new company taking over the airline, The Express Tribune newspaper reported.
The PIA owes Rs 161 billion to the government and Rs 267 billion to commercial banks, which will be transferred to the holding company, the report said, citing official documents.
Out of the PIA’s assets worth Rs 171.43 billion, assets worth Rs 146.57 billion will be transferred to the new management of the PIA, while assets worth Rs 24.86 billion will remain with the holding company, it said.
The federal government is expediting the privatisation process of the PIA and has prepared a framework for the division of assets and liabilities of the national flag carrier as part of the process, it said.
Out of the PIA's Rs 830 billion deficit, Rs 202 billion will be borne by it and Rs 628 billion by the holding company. As a result, the new company will begin the PIA operations with a deficit of Rs 55.70 billion, the report said.
According to the documents seen by the newspaper, the government will divide the PIA operations into core and non-core segments as part of the privatisation process. All assets and liabilities of the PIA will be divided between these two segments.
Post-privatisation, assets including aircraft worth Rs 92.62 billion, technical equipment for flight operations, operational offices, and other properties, along with long-term deposits worth Rs 6 billion, trade debts and advance deposits worth Rs 22.35 billion, and other receivables worth Rs16.83 billion, will be transferred to the new PIA management.
Additionally, liabilities in the form of long-term financing worth Rs 15.63 billion, aircraft leases worth Rs 30 billion, employee salaries amounting to Rs 27.26 billion, and trade and other payables totalling Rs 121 billion will be inherited by the new company.
Loans taken from domestic and international institutions and the interest payable on them, amounting to Rs 444 billion, will also be transferred to the holding company.
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Maharashtra excise dept cancels liquor permit for Diljit Dosanjh's Pune concert
Pune, Nov 24: The Maharashtra excise department on Sunday cancelled the permit for serving alcohol at actor-singer Diljit Dosanjh's concert in the Kothrud area of Pune later in the evening, an official said.
The department cancelled the permit after people from different quarters, including Kothrud's newly elected BJP MLA Chandrakant Patil, objected to plans to serve liquor at the programme.
State excise commissioner C Rajput said, "The state excise department has cancelled the permission to serve liquor during the programme."
MLA Patil raised an objection against the concert scheduled at Kakade Farm in Kothrud later in the evening.
The BJP leader, in a statement, said, "Such shows are not part of the city's culture. This will create a major disturbance for residents of the area. The event will also cause traffic jams. Hence, I have urged the city police commissioner to cancel the programme."
