A key development has emerged in the privatization process of Pakistan International Airlines (PIA) following a meeting of the federal cabinet’s privatization committee held in Islamabad.

The meeting was chaired by Deputy Prime Minister Ishaq Dar and attended by federal ministers for finance and energy the minister of state for finance the privatization adviser and other senior officials.

According to an official statement the committee approved the inclusion of Fauji Fertilizer Company as an additional consortium member in the privatization process of the national airline.

The statement added that Fauji Fertilizer Company will subscribe to 33.99 percent ordinary shares of PIA Holding Company Limited as part of the investment plan.

Meanwhile Arif Habib Corporation will remain the lead company of the consortium involved in the transaction.

Under the proposed structure, investment in the airline will be made through a special purpose company established by the successful bidder.

The decision of the privatization committee will now be forwarded to the federal cabinet for final approval before the next stage of the privatization process begins.