Pakistani Aviation Minister calls for
privatizing PIA to prevent projected losses of Rs259 billion
In a bid to avert potential
losses, the Minister for Railways and Aviation, Khawaja Saad Rafique, has
highlighted the urgent need for corrective action, including the transfer of
administrative control of Pakistan International Airlines (PIA) to the private
sector. Without such measures, PIA could face significant losses of Rs259
billion by 2030, according to the minister's warning.
Presenting "The
Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023"
for consideration in the Senate on Friday, the federal minister stressed the
importance of Foreign Direct Investment (FDI) and private sector involvement to
ensure PIA's sustainability. The airline currently carries a substantial debt
load of Rs742 billion.
Khawaja Saad Rafique
further detailed that the proposed bill would transform PIA into a holding
company, allowing the upcoming government to determine the percentage of PIA
shares to be made available.
Despite his reluctance
towards privatization, the minister underscored the pressing financial
challenges faced by PIA, which is incurring an annual loss of Rs110 billion,
with its entire revenue being directed towards servicing debts. The adverse
impact of former federal Aviation Minister Ghulam Sarwar Khan's statements was
also highlighted, attributing Rs71 billion in losses to PIA's operations in the
European Union and United Kingdom sectors.
However, due to substantial
opposition from senators, Senate Chairman Sadiq Sanjrani referred the matter to
the relevant standing committee. He acknowledged the necessity of injecting FDI
and granting private sector administrative control to transform PIA into a
profitable entity. As a result, the bill has been forwarded to the appropriate
standing committee for further examination.
The bill outlines
guidelines for the procurement, rental, and leasing of aircraft, parts, and
related items. These procedures will be carried out in accordance with
prescribed methods, overriding the stipulations of the Public Procurement
Regulatory Authority Ordinance, 2002 (XXII of 2002) and its accompanying rules
and regulations.
Source: Geo TV