Karachi: PIA Holding Company Limited (PIAHCL), a public limited entity established by the Government of Pakistan, has encountered delays in filing its quarterly financial statements for the periods ending June 30, 2024, and September 30, 2024. These delays are primarily attributed to the ongoing restructuring and privatization processes involving its major subsidiary, Pakistan International Airlines Corporation Limited (PIACL).
The incorporation of PIA Holding Company Limited was executed on March 21, 2024. This move was part of a strategic decision by the government to manage specified assets, liabilities, and subsidiaries of Pakistan International Airlines Corporation Limited, including specific business properties, rights, liabilities, and obligations.
A significant restructuring effort commenced with the approval of a Scheme of Arrangement (SOA) by the Securities and Exchange Commission of Pakistan on May 03, 2024. According to the SOA, effective from April 30, 2024, PIACL was divided into Core and Non-Core Undertakings. The Non-Core Undertaking was merged with PIA Holding Company Limited in exchange for the entire share capital of PIACL. This resulted in PIACL becoming a wholly-owned subsidiary of PIAHCL. The restructuring concluded with PIAHCL’s Ordinary 'N' and 'U' Class Shares being listed on the Pakistan Stock Exchange, while PIACL was delisted on May 27, 2024.
The major subsidiary, PIACL, is undergoing a privatization process that requires comprehensive audits of its accounts. Special purpose audits were conducted as of September 30, 2023, and April 30, 2024, to facilitate the SOA preparation. These audits have impacted the timely preparation and consolidation of financial accounts at the holding company level.
According to information available from the Pakistan Stock Exchange (PSX), PIA Holding Company Limited has experienced delays in filing its financial statements, but the company assures that its board and management remain committed to fulfilling statutory and regulatory obligations. The company cites the ongoing privatization of PIACL as a significant factor contributing to the delay, as many operations are dependent on developments within its major subsidiary.
Despite these challenges, PIA Holding Company Limited emphasizes its dedication to resolving the current delays and ensuring that future financial statements are submitted promptly. The company requests understanding from stakeholders as it navigates the complexities of the restructuring and privatization processes.