PIA, PSM audit accounts: Government to invite EoI from international auditors

The government will invite expression of interest (EoI) from well known international auditors to undertake a complete audit of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) accounts within five months. The staff level report of International Monetary Fund (IMF) states that PIA and PSM will conduct new audits by reputable international auditors based on financials until end-2019 to further increase transparency. The audits will be completed and published by end-December 2019.
Sources said that international auditors will carry out the audit of entire records of PIA and PSM. In the past, 10 to 40 percent audit of records of PIA and PSM were conducted by the Auditor General of Pakistan. According to the IMF staff report, the Auditor General of Pakistan will complete a special audit of Pakistan Railways based on financial year 2019 financials and publish the audit report by March 2020.
IMF staff report highlighted that losses in the three largest State-Owned Enterprises- PIA, PSM and Pakistan Railways-have continued to accumulate, now totaling over 2 percent of GDP. Privatisation Commission will invite EoI for financial advisor who will give recommendations regarding sale/revival plan of PSM. The government previously excluded sale of PSM from the list of privatisation, but now after exploring all options including public-private partnership and leasing it out to a potential party it has decided to put it again on the privatisation list.