Islamabad, Dec 10: The federal government has agreed to sell the Precision Engineering Complex (PEC), a business unit of Pakistan International Airlines (PIA), to the Pakistan Air Force (PAF) for Rs. 2.5 billion in cash. This sale price is a fraction of the Rs. 10 billion offers made by a sole bidder for 60 percent of PIA’s shares, according to Express Tribune.
The agreement includes Rs. 2.5 billion to be paid over five years, along with PAF assuming Rs. 3 billion in pension liabilities for 259 retired employees and Rs. 1.1 billion in liabilities for 251 active employees. PAF will also take on the responsibility of PEC’s ongoing operations. PEC, which manufactures high-precision aerospace and industrial parts, is valued at Rs. 6.5 billion, including Rs. 4 billion in pension liabilities. A ministerial committee has approved the transfer, and a formal summary for cabinet approval is being prepared.
This move is part of the government’s broader strategy to offload non-core assets, with PEC being separated from PIA and included in the PIA holding company. As of December, last year, PEC’s assets were valued at Rs. 1.2 billion, with liabilities of Rs. 2.9 billion and negative equity of Rs. 1.73 billion.
This deal follows the government’s unsuccessful attempt to privatize PIA in October, where most bidders withdrew due to financial concerns and the government’s refusal to meet their demands.
