Pakistan's Bold Step: Privatization of State Airlines
The Pakistani government has greenlit four parties to potentially acquire a stake in Pakistan International Airlines, marking a pivotal move towards privatizing loss-making state enterprises. This initiative is crucial to fulfilling the terms of a $7 billion IMF bailout. Additionally, a transaction structure for New York's Roosevelt Hotel was approved.
The Pakistani government announced on Tuesday the approval of four entities to bid for a stake in Pakistan International Airlines, signaling a significant move to privatize loss-making state firms. This decision is seen as a test of Pakistan's resolve to meet conditions stipulated in a $7 billion IMF bailout agreement.
This potential sale marks Pakistan's first major privatization in nearly twenty years, reflecting a critical step toward economic reform and financial stability. The move aligns with the country's broader strategy to reduce the burden of loss-incurring state enterprises.
In tandem with the airline stake approval, Pakistan's privatisation ministry confirmed that the Cabinet Committee on Privatisation has also sanctioned the transaction structure for the Roosevelt Hotel in New York, broadening the scope of privatization efforts.
(With inputs from agencies.)
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