NA panel approves bill to speed up privatisation

Standing Committee on privatisation backs early sell-off of PIA

ISLAMABAD:

The National Assembly Standing Committee on Privatisation on Monday supported an early privatisation of the Pakistan International Airlines (PIA) and approved the Privatisation Commission Amendment Bill 2023 by a majority vote.

During a committee meeting, with Farooq Sattar in the chair, Privatisation Minister Aleem Khan said that the jobs of the PIA employees would be protected in the privatisation of the national flag carrier. Privatisation Commission (PC) officials said that employees’ salaries would not be cut.

The committee, after lengthy discussion, approved the Privatisation Commission Amendment Bill 2023 by a majority vote. The bill aimed at speeding up the privatisation process. It stipulated that any petition regarding the privatisation process would now go to a tribunal instead of the high court.

Law Ministry officials said that an ordinance had come in December but the ministry did not have much time. They recommended that if the bill becomes an act within 240 days, it would be good for the country.

Earlier, the PC secretary briefed the committee, saying that the PIA could not be turned into a profitable institution without making fresh investments. “The PIA required $400 to $500 million [investment] to be able to stand on its feet,” he said, adding: “The government does not have enough financial capacity.”

After buying the PIA, he continued, the new owner would have to invest $500 million in the airline. “At present, the government did not have the $500 million to invest in the PIA. Even the PIA itself did not have enough money to service its planes.