Government Finalizes PIA Privatization Amid Massive Financial Losses
Pakistan International Airlines (PIA) is set to be privatized on October 1, 2024, following confirmation by the government during a special meeting of the Standing Committee on Privatisation. Chaired by MNA Dr. Farooq Sattar, the meeting saw Privatisation Division Secretary Jawad Paul providing an update, stating that the process would be completed by the end of September. Over the past eight years, PIA has suffered losses amounting to Rs500 billion, with Rs80 billion lost in the last financial year alone. The airline currently faces an overwhelming debt of Rs825 billion.
Concerns Raised Over Lack of International Interest in PIA
Despite the urgent financial situation, no international companies have shown interest in the privatisation process, a point of concern for the committee members. Committee member Sahar Kamran voiced her frustration, suggesting that the Special Investment Facilitation Council (SIFC) should be disbanded if international investment fails to materialize. This lack of external interest adds another layer of complexity to the already challenging task of turning around the national flag carrier.
Employee Transition Plan Post-Privatization
In response to concerns about the future of PIA’s employees, Jawad Paul assured that staff would continue to serve for three years after the privatisation. Following this period, employees would be gradually phased out with full payment of their dues. This transition plan aims to ease the shift from a government-operated entity to private management, ensuring that the workforce is not left in the lurch.
