PM Kakar directs to expedite PIA privatization

ISLAMABAD: Caretaker Prime Minister Anwaar-ul-Haq Kakar on Tuesday directed the authorities concerned to expedite the privatization process of Pakistan International Airlines (PIA), the national flag career.

In a meeting with his Adviser on Aviation Air Marshal (retd) Farhat Hussain, the prime minister emphasized ensuring transparency in the process of privatization.

PM Kakar said privatization of state-owned enterprises was on priority for the government to save the national exchequer from further financial losses.

He said the country’s aviation industry had a high scope of growth through investment.

The prime minister also directed the out-sourcing of airport operations in a bid to ensure improvement of services.

The Aviation Adviser briefed PM Kakar about the matters of the ministry and the reform process.

More Read: PIA privatization plan ‘fails over financial obligations’

The privatization plan of Pakistan International Airlines (PIA) for the upcoming year has faced setbacks, as the privatization commission couldn’t resolve issues related to loan repayments and legal matters.

Sources close to the development stated that the interim federal minister for privatization, Fawad Hussain Fawad, failed to implement the plan to transfer PIA to the private sector by January 2024.

Sources suggested that PIA cannot afford to pay more than Rs. 8 billion in interest on the Rs. 260 billion loan. The banks involved in lending to PIA include the National Bank and Bank of Punjab, along with eight other commercial banks.

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