Work under way to bring in a technical partner at the airline level: Arif Habib
Pakistan
International Airlines (PIA), recently sold under the government’s privatization
program, plans to seek strategic and technical partnerships to modernize its
operations and enhance competitiveness, according to Arif Habib, Chief Executive of Arif
Habib Corporation Limited (AHCL).
Speaking in a TV program, Arif Habib said work was under way to bring in a technical partner at the airline level. He added
that the government still holds a 25 percent stake in PIA and retains the
option to transfer this remaining shareholding to a new partner at a later
stage.
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Habib says job security of PIA employees will depend on their performance
His comments follow last month’s privatization
auction in which an AHCL-led consortium won a 75 percent stake in the national
carrier with a highest bid of Rs135 billion. The offer surpassed the
government’s minimum price of Rs100 billion as well as the Rs115 billion base
price set at the start of the bidding process.
Arif Habib said the privatization deal earmarks
Rs125 billion for PIA’s rehabilitation and development. Of this amount, Rs10
billion will be injected in cash, while shares worth Rs45 billion will be
transferred to the government as part of the transaction.
Highlighting operational issues, he noted that
only 14 to 15 aircraft are currently operational, with several planes grounded
due to shortages of engines and spare parts. Under the recovery strategy, PIA’s
fleet is expected to grow to 38 aircraft within the next three years.
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On the broader economic outlook, Arif Habib
said Pakistan had entered a more stable macroeconomic phase, citing declining
inflation, stronger foreign exchange reserves, improved government revenues,
rising remittances, and narrowing trade and current account deficits,
particularly the latter.
However,
he warned that the recovery remains vulnerable. High electricity tariffs,
elevated interest rates and heavy taxation, he said, continue to pose
significant risks and must be addressed to ensure sustainable and long-term
economic growth.
Source:
Profit Pakistan