ISLAMABAD, Oct 2 : Pakistan’s Finance Minister Muhammad Aurangzeb has vowed to complete the privatization of the debt-ridden state-owned Pakistan International Airlines before the end of the year.
The finance czar’s remarks come after the PIA’s privatisation, previously extended till October 1, was “postponed” until October 31 with the sources linking the deferment to low bidder interest, court cases, fleet ageing and civil aviation issues.
The Pakistan International Airlines Corporation Limited (PIACL) is majorly owned by the government (86 per cent), while the remaining (14 per cent) is owned by private shareholders.
However, years of losses and accumulation of debts have forced the privatisation commission to finally go for the complete privatisation of the airlines, which was once a profit-earning venture before it fell prey to political interference and corruption.
At present, the total liabilities of the airlines are understood to be at least Pakistani Rs 834 billion with an oversized workforce.
Speaking to a private channel, Aurangzeb said that the government will see to the privatisation of the national carrier along with three power distribution companies before 2024 end, according to a report by Geo News.
The privatization of PIA has been on the cards for about a year.
Elaborating on the privatisation process, Aurangzeb said that outsourcing of Islamabad and Karachi airports would be made in phases. He said that rightsizing and restructuring of some ministries and departments would also be completed before the next fiscal year.
Noting that the government was working on privatisation of sick units and power sector reforms, he said all necessary steps have been taken to achieve the objectives. (PTI)
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