Achi news desk-
Despite the privatization of Pakistan International Airlines (PIA), about 49 percent of the shares will remain owned by the government.
According to Finance Ministry sources, the term sheet has been placed with commercial banks for re-profiling PIA loans. NOCs will be issued by commercial banks this week and assets will be transferred back.
Sources say that with the signing of the term sheet, the banks will get the loan for 10 years at an interest rate of around 12 percent. In accordance with the initial structure, up to 51% shares of PIA will be sold.
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It was proposed to spend the money received from the privatization of PIA on rehabilitation. The party buying the PIA will have to invest 51%.
Sources have said that if PIA becomes a profitable entity, the loan will be returned to the banks from the dividend received. Banks can issue sukuk, Islamic and conventional bonds as per term sheet signature.
