Advisor to be appointed to accelerate the privatization of PIA
Pakistan is set to designate an advisor to spearhead the
privatization of its deficit-ridden national airline, as disclosed by the Privatization
Minister, Fawad Hasan Fawad, of the interim government on October 10, 2023.
In August, the previous coalition government had declared
its intention to privatize the Pakistan International Airline (PIA) in
conjunction with outsourcing the management of three major airports. This move
is in line with the country's fiscal discipline strategy established in
collaboration with the International Monetary Fund, following Pakistan's
receipt of a $3 billion IMF bailout in June to avert a potential sovereign debt
default.
PIA's
financial matters to be transferred to Privatization Commission
The Privatization Minister stated that a singular
transaction advisor will be appointed to oversee this process, with the
finalization of this appointment anticipated to occur on the following day due
to the urgency imposed by the struggling $350 billion Pakistani economy.
The advisor's comprehensive report will serve as the basis
for the government's ultimate decision regarding the privatization. Fawad also
acknowledged the challenging nature of the task, given the reluctance of
financial institutions within the country to extend further financial support
to PIA. The airline has incurred annual losses of approximately 156 billion
Pakistani rupees ($556.96 million), and a significant portion of its fleet,
consisting of 34 aircraft, has been grounded due to financial constraints. As
of June 2023, the airline had amassed losses totaling 713 billion rupees ($2.55
billion), prompting the government to take decisive action.
Committee
established to expedite privatization of Pakistan International Airlines (PIA)
Furthermore, Pakistan aims to restore PIA's flights to the
United Kingdom within the next three months. These flights were suspended
following a fraudulent pilot scandal in 2020. PIA's services to Europe and the
UK have remained suspended since then, following the European Union's Aviation
Safety Agency's revocation of the national carrier's authorization to operate
in the region due to the pilot license controversy. The Minister indicated that
local aviation authorities have communicated that the European agency is likely
to conduct a final safety assessment in Pakistan at the end of the year or
early next year, which could potentially result in the lifting of the flight
ban.
Source: https://www.channelnewsasia.com/