Achi news desk-
Pakistan International Airlines (PIA) has cleared a major hurdle in privatisation, a term sheet has been agreed with commercial banks for re-profiling the debt owed by PIA.
After this NOC will be issued by commercial banks this week and pledged assets of PIA will be transferred back.
By signing the term sheet, the banks will get a profit of around 12 percent on the loan over 10 years.
According to the initial structure, up to 51 percent shares of PIA will be sold while around 49 percent shares of the airlines will remain in government ownership.
According to the sources, it is proposed to spend the money received from the privatization of PIA for the rehabilitation of PIA. The party buying the PIA must invest 51% in the PIA.
Sources say that if PIA becomes a profitable entity, the loan will be returned to the banks from the dividend received.
According to the term sheet, banks can issue sukuk, Islamic and conventional bonds.
