Secretary Privatization Commission on Monday informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines (PIA) would require at least $500 million in new investments to become profitable and self-sufficient.
He said any investor who manages to acquire PIA must inject $500 million to revamp the airline. He said PIA’s profitability hinges on this substantial investment, noting that the airline’s current state is untenable and has insufficient funds to service its planes.
The meeting was also briefed on how Gulf countries were reluctant to invest in PIA.
The NA body was informed that PIA’s early privatization can save Rs. 100 billion annually while employees’ rights will also be protected.
The panel supported fast-tracking the privatization of PIA and passed the Privatization Commission Amendment Bill 2023 for a speedy process of privatisation-related cases.
It was disclosed that PIA’s annual losses range between Rs. 80 to 100 billion and have contributed to a total loss of Rs. 830 billion over the past few years.
The committee was also informed about PIA employees’ demands for a 50 percent salary increase, despite a 15-20 percent increment granted in January 2023.