Cabinet expects more investment after PIA sell-off

Notes privatisation recognised globally owing to high-level transparency

ISLAMABAD:

Cabinet members have observed that the privatisation of Pakistan International Airlines (PIA) would usher in a new era, marked by greater investment inflows from both domestic and foreign investors.

In a recent meeting chaired by Prime Minister Shehbaz Sharif, the cabinet members noted that it was a matter of immense satisfaction and pride that the successful privatisation of PIA was being recognised and appreciated globally and a leading privatisation expert from the World Bank called the bidding process world-class in transparency.

It was highlighted that the high-level transparency and merit left critics with no option but to acknowledge the government's sincerity and dedication for the betterment and modernisation of the economy.

In his opening remarks, the PM mentioned with immense satisfaction that the bidding process for the privatisation of PIA Corporation Limited (PIACL) had been successfully completed, with the offer of Rs135 billion for 75% government shareholding. He pointed out that the bid was much higher than the reference price of Rs100 billion approved by the Cabinet Committee on Privatisation and ratified by the cabinet, which was a testament to investor confidence in Pakistan's economic and financial policies.

Recalling that none of the many attempts in the past to privatise PIA had proved successful, the PM stressed that owing to the sincere efforts of all concerned, the airline was finally privatised.

Commending the hard work done by the federal ministers and government officers, the premier particularly praised Adviser on Privatisation Muhammad Ali for having steered the initiative with courage and conviction to a fruitful conclusion.

PM Sharif further observed that the entire privatisation process was carried out in a transparent manner, with the bidding conducted under full public view through live coverage on television channels.

The prime minister appfffdrised the meeting that under the privatisation structure, the successful bidder, after taking over the PIA management, would run the airline on sound corporate and management principles and modernise the fleet.

For the purpose, the bidder was required to inject an equity of Rs125 billion into PIA. It was necessary, the PM said, that the recent turnaround in profitability of the airline was solidified further.

He added that the new management would have the right incentives to take maximum advantage of the investment-friendly terms contained in the privatisation structure to ensure that the national flag carrier regains its past glory in the world of aviation.

The PM expressed hope that PIA's privatisation would prove to be a catalyst for the sale of other state-owned enterprises.

Cabinet members lauded the astute leadership, administrative acumen and effective decision-making that had made possible the privatisation of PIA – a feat that could not be achieved by the predecessors.