Aviation and Airlines (Commonwealth Union) _ The Pakistani government has announced its intention to privatize Pakistan International Airlines (PIA), the struggling national carrier, as part of its broader privatization program. This move is in line with Pakistan’s efforts to outsource its airport operations, as required by an International Monetary Fund (IMF) deal worth $3 billion.
The Cabinet Committee of Privatization, led by Finance Minister Ishaq Dar, has included PIA in the active list of privatization projects. This decision follows a recent amendment to the law by the Parliament, facilitating PIA’s inclusion in the ongoing privatization agenda. This step underscores the government’s commitment to address PIA’s financial challenges and revitalize the aviation sector. The committee has also approved the hiring of a financial adviser to oversee the transaction of Roosevelt Hotel, an asset owned by PIA Investment Limited. This multifaceted approach aims to streamline PIA’s operations and create a more competitive aviation landscape, fostering both local and international travel.
PIA has faced a series of challenges that have led to its decision to pursue privatization. Notably, its flights to Europe and the UK were suspended in 2020 due to concerns about fake pilot licenses, damaging the airline’s reputation. A tax dispute with Pakistan’s Federal Board of Revenue further exacerbated PIA’s financial troubles, resulting in frozen bank accounts and operational disruptions.
Currently operating with a fleet of 33 aircraft, including inactive ones, PIA’s privatization is part of broader efforts in the Pakistani aviation industry. The government plans to proceed with the tender sale of a contract to manage Islamabad International Airport and has been in discussions with Qatar regarding joint management of airport terminals. These measures aim to generate foreign exchange reserves and boost the country’s economy.
Overall, the privatization of PIA represents a significant step toward economic reform and the revitalization of Pakistan’s aviation sector, with the goal of creating a more efficient and competitive industry.
