PM Kakar orders for PIA privatization on fast track basis
ISLAMABAD: Caretaker Prime Minister (PM) Anwaar-ul-Haq Kakar has directed to complete the...
PIA dismissed reports on airline’s closure.
ISLAMABAD: Pakistan International Airlines (PIA) has strongly denied apprehensions and reports regarding the closure of the national airline as baseless and devoid of truth.
PIA spokesman Abdullah Hafeez Khan said the anxiety and misunderstanding spread by a certain section about the airline is unfounded.
The reputation of PIA has been greatly damaged by giving the date of September 15 as the date of closure, the spokesperson said.
The PIA management was busy disbursing funds and has achieved its requirements. He said the PIA is handling the most urgent domestic and international payments and salaries were also paid to employees.
The spokesperson said PIA operations are going on continuously and flights are operating, He said PIA is standing on a strong foundation and has full capacity to cope with these situations.
PIA has a strong network across the globe and its fleet operates globally, he said. The spokesperson said PIA has an adequate number of aircraft for international and domestic flights.
PIA privatization
Caretaker Prime Minister Anwaar-ul-Haq Kakar gave caretaker Minister for Privatisation Fawad Hasan Fawad the task of overseeing the process of privatisation of the airline and directed him to complete it on a fast-track basis.
Chairing a meeting on issues related to the PIA, the interim prime minister said the process must be expedited. He directed all the relevant stakeholders to find an immediate solution to matters related to privatisation of the airline. The prime minister was briefed on the progress of privatisation process of PIA.
According to reports, PIA’s employees have not received salaries for the month of August due to the financial crunch. The Aviation Division has requested the government for the immediate release of Rs23 billion as a bailout package.
The Ministry of Finance has dismissed reports that the government was going to extend any financial support to PIA to bring it out of the current crisis. There are also reports that PIA had grounded 14 out of 31 aircraft in its fleet due to insufficient funds.
Financial crisis
The statement comes after it was reported that PIA has temporarily grounded some of its planes, assuring that they would be back in the air once payments were made.
Earlier this week, it had emerged that PIA had resorted to grounding several aircraft as it struggled to secure funds to maintain its operations for the next few months.
The Ministry of Aviation warned that the PIA currently was grappling with a severe financial crisis, leading to arrears with creditors, aircraft lessors, fuel suppliers, insurers, international and domestic airport operators, and even the International Air Transport Association (IATA).
The national flag carrier had been compelled to ground five of its 13 leased aircraft, with the possibility of four more facing a similar fate, the ministry said.
The Ministry of Aviation disclosed that Boeing and Airbus were on the verge of discontinuing the supply of spare parts by mid-September. The ministry requested an immediate cash injection of Rs23 billion, and the suspension of duties, taxes and service charges to domestic agencies.
The ministry cautioned that the PIA’s restructuring was a complex process that was expected to span around eight months. It also emphasized that for the divestment of PIA’s shares to yield a fair value, the airline must remain operational throughout all stages of restructuring.
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