Federal Minister for Privatization and Investment Board, Abdul Aleem Khan, addressed the National Assembly, asserting that every government over the past 20-25 years is responsible for the downfall of Pakistan International Airlines (PIA).
He emphasized that transparency will be maintained throughout the privatization process, and any concerns can be discussed openly.
In response to challenging questions from coalition parties about privatization, Minister Khan highlighted that PIA’s collapse did not happen overnight but was a cumulative result of poor management by successive governments. He announced a deadline of August 2024 for the privatization of PIA, revealing that all six companies shortlisted for the process are Pakistani.
Khan urged all parties to acknowledge their role in PIA’s financial losses, stating, “PIA cannot recover from its losses regardless of the amount spent unless the government stops managing loss-making institutions.” He pointed out that privatization is essential for making these institutions profitable again.
Addressing concerns from the Pakistan People’s Party (PPP) and MQM about potential unemployment and the sale of valuable assets, Khan assured that the purchasing company will not lay off PIA employees. He clarified that PIA’s properties, including two hotels in France and the USA, will not be sold. Instead, only the operational engineering and kitchen divisions are being privatized.
The minister said the Securities and Exchange Commission of Pakistan (SECP) has also granted approval in May 2024, adding that Privatization Commission has received twelve interests from investors including airlines in PIA, and the Privatization Commission board reviewed the matter on June 3.
The minister said the companies’ prequalification has been approved, and bidding is planned for August.
He said that out of PIA’s fleet of 34 aircraft, 13 are grounded, and only 20 to 21 are operational, adding that no employees would need to be laid off, and any airline taking control of PIA would utilize the existing staff.
The minister said the PIA’s privatization would follow a 49-51 percent model under a public-private partnership, with the government will hold 49 percent share.
Nafisa Shah, a member of the National Assembly, raised concerns about the transparency of the privatization process. In response, Khan acknowledged the complexity of the transaction and reassured that measures are in place to ensure transparency. He mentioned meetings with three senators, including Sherry Rehman, and expressed willingness to address any further reservations.
Minister Khan’s statements underscore a commitment to reviving PIA through privatization while maintaining transparency and addressing stakeholder concerns. The proposed measures aim to make PIA profitable and sustainable, ensuring its long-term success and stability.
