Another legal obstacle removed in the way of PIA privatization after LHC's dismissal of case
The Lahore High Court (LHC)
Rawalpindi Bench has dismissed a petition challenging the privatization of
Pakistan International Airlines (PIA), removing a significant legal hurdle in
the government’s plan to sell its majority stake in the struggling national
carrier.
Justice Jawad Hassan issued a short
order rejecting the petition, with a detailed judgment to follow. The decision
supports the government's push to offload its 96% share in PIA as part of
broader economic reforms and commitments to the International Monetary Fund (IMF).
The petition had argued that the
federal government failed to comply with Section 23 of the Privatization
Commission Ordinance, 2000, by issuing a privatization notice without a proper
assessment of PIA’s assets. The petitioner also cited Supreme Court precedents
and claimed that the high court had jurisdiction under Article 199 of the
Constitution to intervene in such matters.
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Justice Hassan, however, noted that
while courts can review administrative actions, they should exercise restraint
in matters of economic policy, especially those involving financial decisions
made by expert bodies.
The petitioner also contested a 2023
amendment to Section 28 of the Privatization Ordinance, which created an
appellate tribunal for privatization matters. He argued that this was
unnecessary, given that high courts already hold constitutional authority.
Barrister Minaal Tariq, representing
the Privatization Commission, defended the government's process, asserting that
all legal and procedural requirements—including asset evaluations—had been met.
She noted that the earlier privatization attempt was void after the sole bidder
withdrew, and the current process aligns with both Article 173 of the
Constitution and the Pakistan International Airlines Corporation (Conversion)
Act, 2016.
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The court also acknowledged similar
petitions pending before the Sindh High Court and another LHC bench,
referencing the KESC Labour Union case and prior rulings interpreting the PIAC
(Conversion) Act to highlight that a legal framework for such matters already
exists.
With this ruling, the government is
now positioned to proceed with its plan to privatize PIA and restructure the
airline’s financial liabilities.
Source: Profit Pakistan