ISLAMABAD: The Privatisation Commission (PC) Board has approved appointments of British multinational, Ernst & Young (EY) as a Financial Advisor to aid the process of privatisation of Pakistan International Airline Limited (PIACL).
According to PC, a meeting of Privatisation Commission Board under the chairmanship of the Federal Minister for Privatisation Fawad Hasan Fawad granted approval to the appointment of a financial advisor (FA) for divestment of Pakistan International Airlines Corporation (PIA).
The agenda of the meeting also included the extension of financial services agreement with the financial advisor on privatisation of House Building Finance Corporation Limited (HBFCL) and the revival of the financial services agreement with the financial advisor on privatisation of First women Bank Limited (FWBL). The committee also discussed at length the issues regarding the 35 year long pending privatisation of Pak China Fertilizer Limited.
According to details, 8 Interested parties submitted their technical and financial proposals for the hiring of a financial advisor for the privatisation of PIA.
On the basis of the laid down criteria the evaluation committee formed by the board declared the consortium led by Ernst & Young as the “Top ranked Interested Party”. The board formed a negotiating committee and tasked it to conclude the financial services agreement with the top ranked bidder.
The financial services agreement with the FA on the privatisation of HBFCL expired in January, 2023 and the board accorded approval for a 24-month extension.
The board also accorded approval to the revision of cost due to additional work required from the financial advisor. Similarly, the financial services agreement with the financial advisor on the privatisation of FWBL expired in April, 2023.
The agreement has been accorded a 24-months extension with price adjustment for changed scope of work. The Board decided that the responsibility for the unnecessary delay in the privatisation of both HBFCL and FWBL may be fixed after a detailed enquiry into the matter.
The board, after considering the issues and litigation in the privatisation of Pak China Fertilizer Limited, directed that details of all proceedings since the initiating of the contract for privatisation be shared with the board in its next meeting.
The board resolved to determine the factors behind the change of stance of the privatisation commission more than once despite the arbitration award decision in 1997. It was decided that the board will form a final stance for presenting to the court in its next meeting after considering all the details involved.