The government wants to divide PIA into two organizations before selling it.

Prior to the airline being privatized, the federal government has announced intentions to establish two distinct national flag carrier firms, to be named as PIA Aviation and PIA Holding Companies, according to sources close to the process.

According to sources, the federal government wants to start the privatization process only after paying off all of PIA’s outstanding debts.

Potential investors will have a deeper understanding of the airline’s financial situation with the transfer of the airline’s present local loans to the holding company.

In an effort to resurrect the national carrier, the federal government has been proactive in obtaining foreign funding.

According to sources, plans are in motion to create a new approach for overseeing foreign loans totaling about $88 million, indicating a determined attempt to bring desperately needed funds into the airline’s operations.

The government would rather concentrate on negotiating new interest rates for the ensuing ten years than seek restructuring the current foreign debts.