ISLAMABAD: Caretaker Minister for Privatization Fawad Hasan Fawad on Tuesday chaired a meeting with different stakeholders regarding the restructuring of Pakistan International Airlines (PIA) leading to a privatization process.
Advisor to PM on Aviation along with key members of his team, senior management and legal and financial consultants of PIA were also present. The meeting agreed on clear timelines regarding the process to meet the target set by the prime minister and the cabinet.
Earlier last week, Caretaker Prime Minister Anwaar ul Haq Kakar instructed new caretaker Fawad Hasan Fawad to oversee the process of privatization of PIA and to complete it on a fast-track basis.
The prime minister directed the Ministry of Privatization to expedite the process of privatizing the process of the national airline so as to provide a reliable service to the users and raise the standards to match global airlines.
The prime minister chaired a meeting on matters related to PIA and was briefed on the progress of the privatization process He directed all the relevant stakeholders to find an immediate solution to the matters related to the privatization.
Meanwhile, the e Economic Coordination Committee (ECC) of the federal cabinet has directed that the government prioritize the privatization of Pakistan International Airlines Corporation Limited (PIACL) over restructuring.
PIACL, a state-owned entity, has been struggling for years to remain financially viable. The government holds a 92% stake in the airline, its financial troubles have been a cause for concern.
As of December 31, 2022, the airline’s debt and liabilities reached a staggering Rs 743 billion, surpassing the total value of its assets. Operational losses for the last financial year alone stood at Rs 11 billion, contributing to total losses of Rs 86.5 billion.
If PIACL’s financial situation remains unaddressed, projections indicate that its debt and liabilities could skyrocket to Rs 1,977 billion by 2030, with annual losses reaching an unsustainable Rs 259 billion.
In a pivotal decision, the ECC has shifted the focus away from restructuring and toward the privatization of PIACL. The Ministry of Aviation has been tasked with collaborating closely with the Privatization Commission to expedite the privatization process.
To facilitate this move, the Aviation Division has been instructed to establish a technical committee. This committee will be responsible for devising a concrete action plan to address PIACL’s outstanding liabilities and ensure a smooth transition to privatization.
PIA dismisses ‘baseless’ reports on national airline’s closure
PIA dismissed baseless reports on the national airline's closure. PIA is disbursing...