World Bank consults with Pakistani government on PIA privatization
strategy
On October 5, 2023, Country Director of the World Bank, Najy
Benhassine, met with Federal Minister for Privatisation, Fawad Hasan Fawad, to
discuss the government's commitment to divesting major state-owned enterprises
in order to prevent significant financial resource depletion and enhance their
efficiency.
During the meeting, Minister Fawad elaborated on the
government's plans for the privatization of Pakistan International Airlines
(PIA) and other state-owned entities, with a particular emphasis on optimizing
the performance of former Wapda distribution companies (Discos).
Committee
established to expedite privatization of Pakistan International Airlines (PIA)
Fawad Hasan Fawad outlined the key aspects of the PIA
privatization strategy and expressed the government's intention to involve the
World Bank and other financial institutions in the initial phases of this
endeavor. He also emphasized the government's aim to develop a comprehensive
model for PIA, with the World Bank playing a pivotal role as a potential future
partner.
In addition, official sources informed Dawn that a dedicated
meeting of the Privatisation Commission board would convene to address the
privatization of PIA on the following day. PIA has taken precedence in the
privatization agenda due to its ongoing substantial financial losses, which
amount to billions of rupees annually. The privatization of PIA is seen as an
essential step to alleviate these losses and enhance its operational
efficiency.
Pakistan
International Airlines (PIA) union to go on strike against privatization
Minister Fawad emphasized that the overarching goal is to
attract much-needed private investment through the privatization process, thereby
freeing up government funds for deployment in critical sectors.
Source: Dawn