National Privatization Commission’s plan to privatize Pakistan International Airlines (PIA) by January next year has encountered difficulties, sources have revealed.
According to sources, the legal hurdles and challenges in repaying loans for PIA have thwarted progress in the privatization process.
Despite Caretaker Minister for Privatization Fawad Hassan Fawad’s intention to transfer PIA to the private sector by January, the unresolved legal issues and financial constraints have cast a shadow over the privatization initiative.
With PIA facing financial constraints, the Finance Ministry is expected to make a crucial decision in the next three months to address the airline’s financial requirements.
However, reports suggest that the privatization effort has faced setbacks, and a final decision on restructuring government loans for PIA has been deferred.
Sources indicate that PIA has borrowed over Rs. 270 billion from commercial banks, including the National Bank and Bank of Punjab, with government guarantees.
The airline’s ability to meet loan repayment obligations is limited, with sources emphasizing that it cannot afford to pay more than Rs. 8 billion in interest on a Rs. 260 billion loan.
As the situation unfolds, the Finance Committee in the Treasury Department is set to play a pivotal role in making the final decision on PIA’s financial requirements.
The complexities surrounding PIA’s privatization continue to raise questions about the viability of the plan and the financial stability of the national carrier.
Beware of privatization stunt. See how miserably bank employees of MCB Bank Ltd, HBL, ABL, UBL are living their lives after privatization. Neither living nor dead.
PIA must be done away with even if it means giving it away free. It is a white elephant continuously bleeding the public exchequer.
It extremely frustrating to see hurdles in the privatization of PIA. PIA, Railways, Steel Mill, Pakistan Post, Radio Pakistan, PTV, State Life Insurance Corporation, NBP, SME Bank, First Women Bank, National Savings and all the State owned enterprizes needs to be privatized on war footings. If this is not done then it will bring the down fall of this country. Pension Reforms are also required to be done immediately to save the country for our generations. The capacity of privatization commission shall be enhanced by hiring competent professionals on contract basis.
Fully agree with Nawaz. Privatise all what he has mentioned and give lumpsome pension in the form of ‘golden handshake’ once, at the time of retirement. Otherwise the country will go bankrupt sooner than later.
This law should be equally implemented on Defense forces personal???
Which law you are referring to?
Pension
Why not this and all government aim to eradicate corruption from every government institution ‘why these caretakers and other don’t work hard for this religiously ‘I don’t see any airline been privitized in our neighbourhood ‘is emirates’etihad’singapore’iran’ indian airlines are privitized?
Why you do not sell the country to Arabs
The duffers are handling the privatisation of PIA, moreover million of dollors are being paid to foreign financial consultants without any foreseeable results… Seemingly back to square one.