Mohsin Siddiqui (Chief Reporter)

The Securities and Exchange Commission of Pakistan (SECP) has given its nod to the Scheme of Arrangement between Pakistan International Airlines Corporation Limited (PIA) and PIA Holding Company Limited (HoldCo).

Earlier sanctioned by the Federal Cabinet, the Scheme delineates the legal separation plan of PIA, with directives for the Aviation Division, PIA, and HoldCo to undertake necessary corporate and regulatory actions for its implementation.

Following approval from shareholders and creditors last month, the restructuring encompasses the segregation of PIA’s core aviation business from its non-core activities. Non-aviation-related businesses will be transferred from PIA to HoldCo.

The SECP’s approval clears the path for HoldCo to acquire 100% shareholding in PIA. Additionally, it facilitates the issuance and allotment of shares by HoldCo to qualifying shareholders of PIA, ensuring a seamless transition in ownership structure.