Government only seeking strategic partner for PIA: Dar
Finance minister claims government has no plan to privatise the national flag carrier
PHOTO: AFP/FILE
Finance Minister Ishaq Dar on Sunday claimed that the government has no plans of privatising Pakistan International Airlines (PIA) and only wants to seek a strategic partner for the national flag carrier.
“Efforts would be made to invite credible and reputed international strategic partners to the extent of 26% in only the core business of PIA,” Radio Pakistan quoted the finance minister as saying in a statement.
Seeking a strategic investor for PIA
Further, the finance minister categorically stated that there will be no layoffs in the national flag carrier, adding there has been a visible improvement in the overall working of the airline which, he said, was due to the government’s efforts.
“The number of operational aircraft available with the PIA has increased from 18 to 38 and this figure will rise to 40 by the end of this month,” he pointed out.
The finance minister also said the average aircraft age has been reduced from 14 years to nine years while the government is aiming to bring it further down to six years.
Claiming the recently issued ordinance by the government was aimed at freeing management of the national flag carrier from government control Dar expressed his hope that it would enable the airline to take its decisions independently.
Amid pressure: Anti-privatisation rally put off, protest rages on
The remarks come in wake of anti-privatisation protests being carried out by disgruntled workers of the PIA against the imminent privatisation of the airline.
The government on Friday approved another bailout package – Rs9.4 billion including Rs4.4 billion cash injection – for a struggling, but to be privatised, PIA, raising questions on the proposed sell-off of the national carrier that has moved to an advanced stage.
Earlier this month, the federal government refused to service Rs248 billion debt of PIA from the budget. The PIA Board of Directors had demanded Rs3.5 billion per month to avoid default until the airline was privatised.
To remove a legal hindrance in the privatisation, President Mamnoon Hussain has already promulgated an Ordinance to repeal the 1956 Act of PIA, triggering protests by employees and inviting criticism from opposition parties for bypassing parliament.
PIA employees to observe token walkouts today
After issuing the Ordinance, the government converted its Rs23.6 billion loan into equity, increasing its share to over 94% from 88%.
“Efforts would be made to invite credible and reputed international strategic partners to the extent of 26% in only the core business of PIA,” Radio Pakistan quoted the finance minister as saying in a statement.
Seeking a strategic investor for PIA
Further, the finance minister categorically stated that there will be no layoffs in the national flag carrier, adding there has been a visible improvement in the overall working of the airline which, he said, was due to the government’s efforts.
“The number of operational aircraft available with the PIA has increased from 18 to 38 and this figure will rise to 40 by the end of this month,” he pointed out.
The finance minister also said the average aircraft age has been reduced from 14 years to nine years while the government is aiming to bring it further down to six years.
Claiming the recently issued ordinance by the government was aimed at freeing management of the national flag carrier from government control Dar expressed his hope that it would enable the airline to take its decisions independently.
Amid pressure: Anti-privatisation rally put off, protest rages on
The remarks come in wake of anti-privatisation protests being carried out by disgruntled workers of the PIA against the imminent privatisation of the airline.
The government on Friday approved another bailout package – Rs9.4 billion including Rs4.4 billion cash injection – for a struggling, but to be privatised, PIA, raising questions on the proposed sell-off of the national carrier that has moved to an advanced stage.
Earlier this month, the federal government refused to service Rs248 billion debt of PIA from the budget. The PIA Board of Directors had demanded Rs3.5 billion per month to avoid default until the airline was privatised.
To remove a legal hindrance in the privatisation, President Mamnoon Hussain has already promulgated an Ordinance to repeal the 1956 Act of PIA, triggering protests by employees and inviting criticism from opposition parties for bypassing parliament.
PIA employees to observe token walkouts today
After issuing the Ordinance, the government converted its Rs23.6 billion loan into equity, increasing its share to over 94% from 88%.