ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has given its nod to the Scheme of Arrangement proposed by Pakistan International Airlines Corporation Limited (PIA). This approval, dated May 6th, 2024 marks a pivotal step in the separation of PIA’s core and non-core business operations.

The Federal Cabinet had earlier sanctioned the legal segregation plan, which was followed by endorsements from PIA’s shareholders and creditors last month. The scheme’s ratification by the SECP is the latest in a series of regulatory approvals that pave the way for a comprehensive overhaul of the national carrier.

Under the approved scheme, PIA’s non-aviation assets will be transferred to PIA Holding Company Limited (HoldCo), effectively streamlining PIA’s focus on its aviation services. The restructuring will culminate in HoldCo assuming full ownership of PIA, alongside the issuance and allocation of shares to PIA’s qualifying shareholders.

This strategic reorganization is expected to enhance operational efficiencies and financial stability within PIA, as it concentrates on its aviation-centric business model. The SECP’s approval is a testament to the confidence in PIA’s potential for growth and sustainability in the competitive aviation market.