ISLAMABAD: Secretary Cabinet, Sardar Ahmad Nawaz Sukhera has reportedly blocked PIA’s restructuring plan prepared by the Prime Minister’s Advisor on Institutional Reforms and Austerity (IR&A), Dr Ishrat Hussain, arguing that it would not be in accordance with Rules of Business, 1973 to take any decision, especially when it entails large sums of public money on a presentation.
Official sources told Business Recorder that Dr Ishrat Hussain recommended that the Cabinet may agree to the conversion of PIA liabilities amounting to Rs.457.1 billion into equity which would be parked in a Special Purpose Vehicle (SPV) Company. The Secretary Finance has apprehended that under the proposed plan, GoP loans of PIACL would be converted into equity which would make cash outflow of PIACL zero. On the basis of improved balance sheet, PIACL may obtain further loans which may again put a burden on…
