PML-N leader advocates replacing PIA with private sector-operated airline
Khawaja Asif, a prominent leader of the Pakistan Muslim League-Nawaz (PML-N), has described Pakistan International Airlines (PIA), currently grappling with financial woes, as a "moribund organization." He suggested that the national carrier should be shuttered.
Asif expressed his viewpoint during an interview with DawnNewsTV, asserting that PIA should have been privatized three to three and a half decades ago. He characterized the airline as a "dysfunctional entity" hemorrhaging funds, deeming it "unthinkable" not to consider selling it to private entities.
Highlighting PIA's predicament, Asif revealed that the airline carries a burden of approximately Rs700 billion in loans, incurring an annual interest payment of Rs86 billion.
He argued that the best course of action would be to cease its operations and replace it with a new airline. In his proposal, employees would be offered golden handshakes.
Government
fast-tracks PIA privatization amid financial crisis
Asif further advocated that any forthcoming airline to replace PIA should be operated by the private sector rather than the government.
On September 6, the Cabinet Committee on Privatisation (CCoP) had decided to establish a technical committee to address hurdles hindering PIA's privatization and restructuring.
The committee urged the aviation division to collaborate with the privatization commission in presenting a comprehensive action plan to the CCoP, complete with a clear timeline framework.
Subsequently, caretaker Prime Minister Anwaarul Haq Kakar assigned newly appointed Privatisation Minister Fawad Hassan Fawad the task of expediting PIA's privatization.
Recently, the Privatisation Commission finalized a specific timeline for PIA's privatization, although detailed specifics have not been disclosed yet.
These developments unfolded against the backdrop of PIA's deepening financial crisis.
In August, a report in Dawn, citing sources, indicated that PIA had grounded several aircraft due to difficulties in securing funds to sustain operations for the coming months. Certain media reports even suggested that operations might cease by September 15, prompting strong responses from the airline's management and Senate lawmakers.
Government
rejects PIA's Rs23 billion bailout request
The Ministry of Aviation, while requesting a cash injection of Rs23 billion, conveyed concerns that Boeing and Airbus, two leading commercial jet manufacturers, were on the brink of discontinuing the supply of spare parts by mid-September.
PIA spokesperson Abdullah Hafeez Khan later refuted claims of the airline's closure as unsubstantiated, assuring that flight operations continued. He added that the airline was prioritizing essential domestic and international payments.
Following this, PIA secured a loan of Rs17 billion, enabling it to pay employee salaries and maintain smooth flight operations. The airline also announced plans to release funds, fulfill national and international obligations, and procure spare parts for immediate aircraft repairs.
Source: Dawn.com