Financial adviser paid $4.3m for failed PIA transaction

The government’s first attempt to privatise Pakistan International Airlines Corporation Ltd (PIAC) cost the national exchequer $4.3 million, the National Assembly Standing Committee on Privatisation was informed on Tuesday. Secretary Privatisation Jawad Paul informed the committee that $4.3m had been paid to the financial adviser Ernst & Young (E&Y) out of a total fee of $6.8m, representing 63 per cent of the agreed payment. The remaining $2.5m will be paid upon the completion of the transaction. The secretary also informed the committee that the Privatisation Commission had carried out the valuation of properties to be retained in the PIACL, and updated valuations were reflected in the financial statements for the period ending April 30, 2024. The committee asked the secretary privatisation to provide details of properties handed over to holding companies.