The federal government of Pakistan has also decided to sell the Precision Engineering Complex (PEC), a subsidiary of Pakistan International Airlines (PIA), to the Pakistan Air Force (PAF) in cash for Rs. 2.5 billion. The sale price is considerably lower than the last offer for 60 percent shares in PIA.
The cash release will be Rs 2.5 billion spread over five years. On the other hand, the PAF will take over pension liability worth Rs. 3 billion of 259 retired employees plus liabilities of Rs. 1.1 billion for 251 active employees. Moreover, PAF will take over the financial obligations for the continued operations of PEC.
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PEC manufactures high-precision aerospace and industrial parts and has been valued at Rs 6.5 billion, including pension liabilities. A ministerial committee has given its approval for the transfer to PAF, and a formal summary is being prepared for approval from the federal cabinet.
Is part of streamlining the non-core assets to improve the financial health of PIA. The government has previously tried to privatize PIA, but with different challenges as most of the bidders withdrew owing to financial concerns.