Loss of flag carrier

Going down of PIA, which nation used to take pride in, is a national tragedy

Privatisation of the national airline is in full swing. The hasty process is being undertaken owing to the dilapidated health of the carrier, which is in dire straits from financial and administrative ends. Moreover, it is an integral part of the deal with the IMF to shred off the deadwood units, in an attempt to turn around the economy. Thus, PIA with liabilities of Rs785 billion ($2.81 billion) and accumulated losses of Rs713 billion as of June last year is the first to go on the list of lessening debentures. To add to this remorseful statistics is an additional loss of Rs112 billion procured in the year 2023, pushing its legacy debt to around Rs825 billion, including negative equity of loans, creditors’ money and losses.

This pathetic state of affairs is all owing to mismanagement and corruption, and the national asset was ruined to serve personal interests. There is no dearth of people among the stakeholders who deliberately grounded the national carrier for a vested deal with foreign aviation. This is why the speed of the privatisation is also being questioned as it would devalue the airline’s worth, and compromise on transparency of the deal.

It is hoped that a 51% stake with full management control would be offered to the new buyer(s) after parking the airline’s debts in a separate entity. This strategy is fraught with consequences as the decision of the outgoing parliament to empower the caretaker government to go ahead with the sale might sooner than later hit litigation. Moreover, besides losses and debt, PIA’s governance and safety standards are also up for debate by global aviation experts.

The going down of PIA, which the nation used to take pride in, is a national tragedy. It is unfortunate that efforts to resurrect the airline on modern and viable lines were a victim of lethargy. Its infrastructure is untenable to international standards, and service is on the decline. As the privatisation comes full circle, in due course of time, there is need for some soul-searching as to how and why we lost the flag carrier.

Published in The Express Tribune, February 3^rd, 2024.

Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.