Privatization of Pakistan International Airlines (PIA) nearing finalization
The Senate Standing Committee on Defense was informed on Friday that the privatization of Pakistan International Airlines (PIA) is expected to conclude by early next month. The committee meeting, chaired by Senator Muhammad Talha Mahmood, reviewed progress on the national carrier’s divestment process.
Officials briefed the committee that Arif Habib Limited, Fauji Fertiliser Company (FFC), Air Blue, and Lucky Group have submitted bids for acquiring a stake in PIA. However, all bidders have requested relaxations in the government’s proposed terms and conditions.
Despite these requests, the government has reaffirmed key stipulations:
- PIA’s name and national flag will remain unchanged
- Ownership must remain with Pakistani nationals
- No foreign individual or entity will be allowed to hold a majority stake
Read More Privatizations
of flag carriers in subcontinent: Challenges and Opportunities
Losses from suspended European routes
The committee was also updated on the suspension of PIA’s flights to the United Kingdom and Europe.
- In 2018, PIA operated 1,420 flights, earning Rs36 billion in revenue but incurring Rs39 billion in costs.
- In 2019, it operated 478 flights, generating Rs15 billion in revenue with Rs13 billion in expenses.
The continued suspension of these routes until 2022 resulted in estimated losses of Rs13 billion and significantly impacted the airline’s international reputation, officials noted.
Committee recommendations
Chairman Senator Talha Mahmood issued several directives:
- Eliminate misuse of PIA facilities
- End free air travel privileges
- Take legal action against unlawful union activities within the airline
Read More Govt
rehires Ernst & Young (E&Y) for PIA privatization effort
ASF operations and airport security concerns
The committee was also briefed on the Airport Security Force (ASF), which provides security at 14 operational airports and oversees 16 non-operational facilities, stretching its resources. ASF’s workforce is composed of 10% women and 90% men.
Senator Saleem Mandviwalla proposed upgrading passenger and baggage screening systems. The chairman urged adoption of modern security technologies, such as passenger marking systems, and expressed serious concern over inadequate security at smaller airports, particularly in Peshawar and Balochistan.
Regional connectivity and strategic routes
The committee further discussed the lack of PIA service to Chitral, a region of strategic importance due to its border proximity. The chairman emphasized Chitral’s potential for improved connectivity, especially if a tunnel link to Tajikistan is developed, offering access to Central Asia.
Source: Profit Pakistan