SECP Sanctions PIA’s Scheme of Arrangement for Business Segregation

Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has granted approval to the Scheme of Arrangement proposed by Pakistan International Airlines Corporation Limited (PIA) and PIA Holding Company Limited (HoldCo), marking a pivotal step in the airline’s restructuring efforts.

According to Securities and Exchange Commission of Pakistan, this approval follows endorsements from the Federal Cabinet earlier this year, which greenlit the legal segregation of PIA’s aviation and non-aviation activities. The Scheme, which also received backing from PIA’s shareholders and creditors last month, facilitates the legal separation of the airline’s core aviation operations from its non-core units, transitioning the latter into HoldCo. This reorganization allows HoldCo to assume complete ownership of PIA’s aviation business, alongside the distribution of shares to qualifying PIA shareholders.