The govt claims PIA will be privatised by June. Here is how it could play out. 

Against all belief, the past six months have seen incredible progress in the privatisation of Pakistan’s national carrier. So what can we expect in the days to come? 

It seems the only thing Pakistan International Airlines (PIA) has been good for in recent times is being used as a bad example. For years now PIA has been a symbol of everything that is wrong with State Owned Enterprises (SOEs) in Pakistan and how they are run. 

That is why it has constantly been on the docket to be privatised. Yet somehow the national airline is always in the news for reasons why the privatisation is failing. Be it the billions of rupees in losses that the company has made over the last decade, disputes over stranded vehicles costing millions of dollars, or the mismanagement of prime property in central New York — it is always crisis after crisis at PIA. 

Which is why when Finance Minister Muhammad Aurangzeb made a statement during a media talking in Washington indicating that Pakistan is expected to sell its flag carrier before the end of the fiscal year, it was not big news. After all, talk of PIA being privatised has been consistent and nothing new. Except this time it might be for real. So what is going on with the privatisation plans? 

Finance Minister gives a timeline

Mr Aurangzeb stated that bids for the airline are expected to come in the upcoming weeks. It was earlier reported that final bidding was scheduled for the 3rd of June 2024. Aurangzeb also mentioned that after this, “the Islamabad airport is next, followed by Karachi and Lahore.”

While he did not provide much details about how much of the airline, the government of Pakistan is willing to let go, previous reports suggest that the government is interested in retaining a sizable share in the airline, even after selling majority stock and managerial control, much like it did with PTCL, back in the day.

But how did we come to the sale of PIA, so quickly, within the span of one month. Let’s recap:

Plans in motions

As the Shehbaz Sharif-led coalition government took the reins of the nation’s economic course, the fate of PIA hung in the balance, with stakeholders eagerly awaiting the unfolding saga of reform and revitalization. The company’s fate had been in a limbo for at least the last one year. During the long stay of the caretaker government in the country during 2023, the company had been on and off the privatisation list.

The privatisation commission under Fawad Hassan Fawad sought ways to revive the airline. However, after touching grass with the company’s long list of losses and inefficiencies, the company’s privatisation became a top most priority. A consortium of financial advisors led by Ernst and Young was hired to calculate the fair value of PIACL, along with addressing other items on PIA’s privatisation agenda.

A few hiccups were faced when restructuring the massive Rs 281 billion debt of PIA, however, the then finance minister fought hard with the commercial banks to bring down the interest rates.

 

To read the full article, subscribe and support independent business journalism in Pakistan

The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account.

Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.

(Already a subscriber? Click here to login)
  • Full Price Subscription Plans

    Not only will you be supporting independent journalism, 25% of the amount from your subscription will be used to subsidise those subscribers who cannot afford the full price of the subscription. As a subscriber you will get full access to exclusive paywalled content, and an ad free reading experience. Yearly full price subscription plans also include a complimentary annual subscription to The Wall Street Journal.

    +

  • Subsidised Subscription Plans

    Pay part of the full subscription price, if you cannot afford to pay all of it, and the rest will be subsidised by a full paying subscriber. As a subscriber you will get access to exclusive paywalled content, and an ad free reading experience.

  • Free Student Subscriptions

    If you are currently a student, you can claim an already-paid-for digital subscription, courtesy

    As a subscriber you will get access to exclusive paywalled content, an ad free reading experience.

     

Shahnawaz Ali
Shahnawaz Ali
The author is a Business and Finance journalist at Profit and can be reached via email at [email protected] and via twitter @shahnawaz_ali1

6 COMMENTS

  1. The process of restructuring the significant Rs 281 billion debt of PIA was not without its challenges, as anticipated with such a large financial undertaking. Despite encountering several obstacles along the way, the former finance minister demonstrated resilience and determination in addressing the issues head-on. One of the major hurdles faced was negotiating with commercial banks to lower the interest rates?

  2. I URGENTLY NEED A VOODOO LOVE SPELL CASTER TO HELP ME GET MY EX BACK 2023/2024
    Email: [email protected]
    Whatsapp: +234 703 166 3661
    This is a very joyful day of my life because of the help Dr Gbogbo has rendered to me by helping me get my ex-husband back with his magic and love spell. I was married for 6 years and it was so terrible because my husband was really cheating on me because I had Fibroids and i couldn’t conceive for my husband because of my Fibroids and my husband was seeking a divorce but when I came across Dr Gbogbo email on the internet on how he helped so many people to get their ex back and help to fix relationships and make people happy in their relationship.  Dr Gbogbo has also restored so many people’s health which includes Herpes, Fibroids, PCOS, Diabetes and many more. I explained my situation to him and then sought his help but to my greatest surprise, he told me that he will help me with my case and then give me a herbal medicine that will help me shrink my Fibroids naturally without undergoing surgery which he really did by giving me the herbal medicine that shrinked my Fibroids naturally without me going for surgery. Here I am now celebrating because my Husband has changed totally for good and I am currently pregnant for him. He always wants to be by me and can not do anything without my presence. I am really enjoying my marriage, what a great celebration. I will keep on testifying on the internet because Dr Gbogbo is truly a real spell caster. Do you really need help? then contact Dr Gbogbo now via Email: [email protected]
    Whatsapp: +234 703 166 3661 He is the only answer to your problem and makes you feel happy in your relationship…

  3. I URGENTLY NEED A VOODOO LOVE SPELL CASTER TO HELP ME GET MY EX BACK 2023/2024
    Email: [email protected]
    Whatsapp: +234 703 166 3661
    This is a very joyful day of my life because of the help Dr Gbogbo has rendered to me by helping me get my ex-husband back with his magic and love spell. I was married for 6 years and it was so terrible because my husband was really cheating on me because I had Fibroids and i couldn’t conceive for my husband because of my Fibroids and my husband was seeking a divorce but when I came across Dr Gbogbo email on the internet on how he helped so many people to get their ex back and help to fix relationships and make people happy in their relationship.  Dr Gbogbo has also restored so many people’s health which includes Herpes, Fibroids, PCOS, Diabetes and many more. I explained my situation to him and then sought his help but to my greatest surprise, he told me that he will help me with my case and then give me a herbal medicine that will help me shrink my Fibroids naturally without undergoing surgery which he really did by giving me the herbal medicine that shrinked my Fibroids naturally without me going for surgery. Here I am now celebrating because my Husband has changed totally for good and I am currently pregnant for him. He always wants to be by me and can not do anything without my presence. I am really enjoying my marriage, what a great celebration. I will keep on testifying on the internet because Dr Gbogbo is truly a real spell caster. Do you really need help? then contact Dr Gbogbo now via Email: [email protected]
    Whatsapp: +234 703 166 3661 He is the only answer to your problem and makes you feel happy in your relationship

  4. Amazing Love Spell To Get Back With your Partner and Fix Your Broken Relationship  WHATSAPP+2349161779461

    My wife broke up with me 3 months ago, and forced me to sign the divorce papers, and I was completely heartbroken. And I could not get back into any shape emotionally. I Thank God for this astonishing and brilliant spell caster that came to my rescue. Wow! This spell caster has helped me so much. Dr Jakuta guaranteed me an urgent 24hrs spell casting, of which I accepted it. Shockingly! this month my wife called me back with lots of apologies after 48hrs which he assured me, and he did everything possible to withdraw the divorce papers which was previously ongoing with the power of this miracle working spell caster. Some people testified that he brought their Ex lover back, some testified that he restores womb, cure cancer, herpes simplex virus and other sickness, Thank you so so so much Lord for your powerful spells. expressions are not sufficient to say than you. Email doctorjakutaspellcaster24@gmail. com. You can also WhatsApp him on +2349161779461

  5. 반면 카지노사이트는 웹사이트에 기반하고 있는 덕에 오프라인 카지노 대비 운영 비용이 극단적으로 적습니다. 운영해야 할 부대 시설도 없고, 관리 직원도 많이 필요하지 않다 보니 운영 비용을 최소화할 수 있습니다. 이렇게 비용을 낮춘 다음, 높은 환수율을 설정하여 사용자에게 이득을 돌려줍니다.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

PM for ensuring third party validation in all government procurements

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Thursday directed the relevant authorities to ensure third party validation including quality insurance in all the government procurements. Chairing a...