PAF to buy PIA engineering unit for Rs6.5b

The government has decided to sell a business unit of Pakistan International Airlines (PIA) to the Pakistan Air Force for Rs2.5 billion in cash, which is equal to one-fourth of the price that a sole bidder offered for acquiring 60% shares in the national flag carrier. The total sales value of Precession Engineering Complex (PEC) is Rs6.5 billion, including Rs4 billion in pensions-related liabilities of its current and retired employees, a senior government official told The Express Tribune. PEC is a business unit of PIA that manufactures high-precision parts for the aerospace industry and a number of other industries. Government sources said that a ministerial committee had already approved the transfer of PEC to PAF at a total price of Rs6.5 billion. A formal summary is now being moved for approval of the federal cabinet, they added.