Islamabad, The Pakistan International Airlines Corporation Limited (PIACL) achieved two significant milestones in its restructuring process on April 20 and 21, 2024, with shareholders and creditors approving the Scheme of Arrangement (SoA) filed with the Securities and Exchange Commission of Pakistan (SECP). The approvals are a crucial step in the broader plan to privatize PIACL and enhance its financial stability.

According to Press Information Department, the Federal Cabinet had approved the legal segregation and restructuring of PIACL as part of the privatization process. Following this approval, the SoA was filed with the SECP on March 28, 2024. To comply with regulatory requirements, the SoA needed the endorsement of both PIACL’s shareholders and creditors.

The blueprint for restructuring was presented to the PIACL shareholders during an Extraordinary General Meeting on April 20, 2024. The SoA received overwhelming approval from the shareholders, with 99.97% voting in favor. The following day, at a meeting with PIACL’s creditors, the restructuring plan and SoA also gained their endorsement.

These approvals represent significant progress toward SECP’s processing of the SoA, leading to a more financially sustainable and focused PIA. The restructuring aims to create a debt-lite version of the airline with improved cash flows, emphasizing aviation while offering a strong foundation for future growth and attracting potential investors. This process is expected to create value for shareholders and lay the groundwork for a more viable and competitive national airline.