Pakistan election panel pauses national airline sale

Pakistan's election commission has asked the caretaker government to "refrain" from finalising a deal to privatise flag carrier Pakistan International Airlines pending a review, a letter from the poll panel seen on Monday said. The Feb. 1 letter from the panel to Pakistan's cabinet secretary, seen by Reuters, comes days ahead of the Feb. 8 general elections. "The caretaker government should refrain from taking any further steps including signing of an agreement in this regard till a decision is made by this commission," the letter said, directing the government to hand over all documents prepared for cabinet approval about the PIA deal. The caretaker government, which did not immediately respond to a request for comment, is close to putting the loss-making airline up for sale after completing a restructuring plan, Reuters has reported. Speaking last week, Privatisation Minister Fawad Hasan Fawad said the plan would be taken to the current cabinet for approval before a new government takes over following the election. The restructuring plan completed by transaction adviser Ernst & Young has divested the PIA into two entities; one 'clean' one and the other to be parked in a holding company with legacy debt, which includes negative equity of 825b rupees in loans, creditors' money and losses.<br/>