The recently-constituted board of directors of Pakistan International Airlines (PIA) approved the privatisation and restructuring of the national flag carrier on Tuesday. 

According to the official announcement, the 83rd meeting of the PIA’s board of directors was held on March 25, during which the scheme of arrangement for the airline’s privatisation and restructuring was approved.

The statement said the board of directors will coordinate with the Securities and Exchange Commission of Pakistan (SECP). 

Moreover, PIA has been bifurcated into two companies: PIA Corporation (PIAC) and PIA Holding. PIAC will own the flying operations, while the other will own assets and liabilities.

The government had appointed Ernst & Young — a global financial advisory firm — to prepare the plan for the loss-making firm, which completed its task during the caretaker setup.

The International Monetary Fund (IMF) has asked the Pakistani authorities to privatise the bleeding state-owned enterprises to revitalise the sick economy. The global lender wants to improve governance and control corruption.

The sources said the voluntary retirement scheme was also discussed under the E&Y plan—presented before the board—and that the transaction advisor has also proposed to retire the employees who have four years of service left.