PPP walks out of NA in protest against PIA privatisation. PHOTO: FILE.
Opposition leader Khursheed Shah stated that the privatisation of PIA should not proceed.
“Whenever Pakistan Muslim League-Nawaz (PML-N) comes into power, they go after the labourers,” Shah added.
Background
On September 12, Prime Minister Nawaz Sharif had directed the ministry of Privatization and Civil Aviation Division to initiate the process of privatisation for PIA with immediate effect. The decision was taken during a meeting chaired by the Prime Minister at the PM House in Islamabad. The Prime Minister gave the go-ahead for an initial phase of privatisation which will see 26% of the airline’s shares privatised. In a speech broadcast in September, Nawaz had described financially troubled state-owned enterprises including PIA as a drain on taxpayers’ money.
PPP had earlier moved an adjournment motion in the Senate seeking debate over the affairs of PIA, making it clear that it would resist any move aimed at privatising national assets.
COMMENTS (15)
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Well in that case is someday our country becomes bankrupt should we privitize it too????
Let us admit that in Nationalization process was a big failure.it deprive Sindh of 22 Familie in 1970, which are finished now.
Instead now a new breed has emerged, not from Sindh,including Karachi.
@Asif Ali Zardari: Completely agreed and that was a point I was trying to make.
PIA is more expensive (bigger planes that run empty, very fuel inefficient) More loss making (1000s of employees and dodgy parts contracts) Its service is more terrible (employees for life do not have to perform to stay employed) Most of its cargo services are probably based on government contracts as it isPutting more public money in it its like trying fill a bottomless bucket with water. It has to be privatized and restructured. Still has good international routes and good opportunities of cargo from Pakistan.
@F: Airblue and Shaheen are not able to handle the overall international traffic, including cargo, that a country the size of Pakistan needs. Also a privatized PIA, with substantial investment, can properly serve the needs of Pakistani diaspora all over the world, by offering more direct routes. As we see that Emirates and Ittehad continue to expand their reach within Pakistan (recently started direct flights from Dubai to Sialkot) in absence of a more viable Pakistani commercial venture.
Selling off public institutions like PIA, according to analysis done by Dr. Farrukh Salim, will save Pakistani taxpayers almost PKR 550B (that is 550 billion rupees) every year. With that money we can build roads, dams and hire a lot more teachers, so that we can be a much better educated and economically strong nation.
PIA has some of the most sought-after (landing/takeoff) slots at international airports throughout the world. It is only missing a strong investment (which Pakistani taxpayers CAN'T provide) and the better management (which history proves can NEVER happen under the political influence of corrupt Pakistani governments). I think a consortium of Pakistani entrepreneurs -- no matter how much you dislike them -- including Malik Riaz, Mian Mansha, et. al. can join hands and turn PIA around. It would be difficult for PIA to compete with the likes of Emirates and Ittehad initially because PIA is not much sought after airline as it does not serve alcohol to foreign passengers on international routes; those rules would be easy to relax under a completely private management.
Anyone who knows Pakistani entrepreneurship and has the (mis)fortune to travel on PIA over the past three decades would agree that this airline and Pakistani nation deserves that PIA be privatized so that it remains around and becomes a profitable viable world-class airline that it can and should be.
The losses of PIA should be recovered from the bank accounts of PPP leaders rather than from taxpayers money.
Aren't Airblue and Shaheen already cheaper? What benefit does PIA give to the state apart from free flights to all the lawmakers? And hiring all of their buddies?
Dear Proletariat
Fair enough. But I don't want to pay taxes that go down the drain paying to cover PIA losses just so that the company can pay your high wages.
Regards
The Taxpayer
The Middle Class People of Pakistan strongly condemn the privatization of PIA. We support private management of PIA but want it to be owned by the state. We do not want more of our state resources being sold off to private corporations who will use their power over us to exploit us in terms of not just low wages (for employees) but also high prices (for consumers). Thank you.
PPP used PIA as their own family business, put their friends and family on the payroll, kick out qualified staff, traveling for free, etc. The last 5 years were the WORST for PIA, it went from an airline to political wing of PPP.If anything, PPP should be severely punished with jail time & compensation for completely destroying the national airline of this country.
If the PPP is so keen why don't they pay for it? I hate my taxes being used for failed business.