Government to Restart Pakistan International Airlines Privatization Process
The federal government of Pakistan has decided to restart the privatization process for Pakistan International Airlines (PIA). The government is expected to invite expressions of interest for the airline’s privatization within this month. A final decision regarding the sale of PIA will be made in an upcoming meeting of the Prime Minister’s Committee on Privatization, officials confirmed.
Renewed Privatization Process
During a recent meeting of the National Assembly Standing Committee on Privatization, Privatization Commission Secretary Usman Bajwa provided an update on the renewed privatization process. He revealed that the International Monetary Fund (IMF) has approved tax exemptions for aircraft owned by airlines, excluding PIA. This exemption will help other airlines in Pakistan compete more effectively with regional carriers, which may improve the overall airline sector in the country.
Job Security for PIA Employees
Farooq Sattar, the Chairman of the Privatization Committee, emphasized the importance of ensuring job security for PIA’s employees. He insisted that no layoffs should occur for at least five years after the privatization. The Privatization Commission has reassured that the protection of PIA’s employees will be prioritized, and the details regarding employee welfare will be finalized before the bidding process begins.
Financial Overview of PIA
The government has already assumed responsibility for PIA’s liabilities, which total Rs 650 billion. However, before the privatization can take place, an additional Rs 45 billion in dues need to be settled. Currently, PIA’s assets are valued at Rs 155 billion, while its total liabilities stand at Rs 200 billion. The new buyer of PIA will also be required to add between 15 to 20 new aircraft to the airline’s fleet.
Privatization of Other State-Owned Companies
Apart from PIA, the Privatization Committee has also initiated discussions regarding the privatization of other state-owned companies, including Faisalabad, Gujranwala, and Islamabad Electric Supply Companies (FESCO, GEPCO, IESCO). Officials have stated that after the appointment of a financial advisor, the privatization process for these companies will gain momentum.
Conclusion
The restart of PIA’s privatization process marks a significant step in the government’s ongoing efforts to reduce its role in the aviation sector. With the backing of the IMF and a focus on protecting employees, the government aims to ensure that the privatization will not only ease the financial burden on the state but also boost competition in the airline industry. As the process unfolds, many are hopeful that this move will help revitalize PIA and strengthen Pakistan’s aviation sector.
Tags: PIA Privatization, Pakistan International Airlines, Privatization Process, IMF Approval, Tax Exemptions, Job Security for PIA Employees, Pakistan Aviation Industry, PIA Assets, Privatization Commission, FESCO, GEPCO, IESCO, Pakistan Economy, Financial Advisor.
Disclaimer: Above information have been compiled from various newspapers and intended to publish for information purpose only.
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