Pakistan's Secretary Privatization hints at restart of PIA's flight operation to US this year
The Senate Standing Committee on
Privatization was informed on Friday that Pakistan
International Airlines (PIA) is expected to resume and expand its
international operations, including the likely restoration of direct flights to
the United States later this year.
Briefing the committee, the
Secretary of the Privatization Commission said new international routes are
being planned following recent operational improvements on services to the
United Kingdom and Europe. He described the prospective reopening of US routes
as “good news” for passengers traveling to North America.
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The committee was also told that the federal government expects to raise a total of Rs. 55 billion from the privatization of PIA. The secretary noted that in the past the government had provided annual bailout packages ranging from Rs. 50 billion to Rs. 60 billion to keep the national flag carrier afloat.
He said the privatization process
would help eliminate recurring losses stemming from political appointments and
operational inefficiencies, adding that the government would no longer need to
shoulder PIA’s financial burden on a yearly basis.
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Members were further informed that PIA’s assets have not been sold as part of the privatization process. Instead, the airline’s liabilities have been restructured to ease pressure on the national exchequer.
According to the briefing, the
government has retained ownership of key PIA properties, including the
Roosevelt Hotel in New York and the Scribe Hotel in France.
Source: Pro Pakistani