Many tweaks in privatisation bill ‘handcuffed PIA’

Interim chief says the bill has worked against airline

ISLAMABAD: The bill passed by the joint session of Parliament paving way for the privatisation of the Pakistan International Airlines has worked against the national flag carrier making it difficult to function smoothly, the PIA acting chief Irfan Elahi told a Senate panel.

Briefing the Senate’s standing committee on Cabinet Secretariat about the reasons behind the national flag carrier’s poor performance and mismanagement, the PIA acting chief said that the PIA (conversion) Bill, 2016 would have been better had it been adopted in its original form.





The bill was passed in a joint session of parliament in April after a thorough discussion in a joint parliamentary committee.

Sharing the reason behind it, Elahi maintained that since 51 per cent shares were still owned by PIA and protection of minority shareholders were the two important provisions of the bill it had ‘virtually handcuffed’ the national flag carrier.

He later told The Express Tribune that after “the so-called conversion it has become more difficult to function as our hands are tied more than ever before.”

Another official of the PIA stated that the outstanding loans were Rs162 billion in 2012 and they surged to Rs185 billion in 2016. “They are not going to stop, as the procedure adopted to repay the loans was the reason for it,” Elahi added.

The committee was surprised to hear that PIA is in loss since 2012.

“What is wrong with PIA, why is nobody being held accountable for blunders in construction of the new Islamabad Airport, the recent crash of its plane and poor infrastructure,” asked Senator Tahir Hussain Mashhadi, adding that somebody should be held responsible.

Elahi replied the Civil Aviation Authority’s policy was unfavourable for PIA and it needed to be overhauled. The members discussed the agenda of the outstanding loans for over an hour but nobody from PIA could give a satisfactory response.



Mashhadi again commented that Emirates Airline was helped out by PIA and see it was carrying domestic passengers to different countries. To this the German CEO of PIA Bernd Hildenbrand replied that the said airline was not only taking passengers but their employees as well.

Senator Kalsoom Perveen said that about 47 people were killed in the air-crash and nobody knew the reason and no one was held responsible. To this, Elahi replied that a probe body was investigating the matter.

Senator Shahi Syed questioned that since only five ATR aircraft out of the 10 were allowed to operate after the examination only five were fit for usage. Mashhadi further asked why the faulty aircraft were purchased.

Elahi replied that the aircraft were not faulty but were being thoroughly checked to avert any incident.

Perveen commented that the German CEO seemed to have joined the wrongdoers as he was receiving Rs3.4 million in salary but the outstanding loans and losses were on the rise.

The committee decided to summon CDA, RDA and district management authorities regarding the fake housing schemes around the new Islamabad airport.

Published in The Express Tribune, January 11^th, 2017.