Caretaker Prime Minister Anwaar ul Haq Kakar has taken a significant step towards the privatization of Pakistan International Airlines (PIA) by directing Minister for Privatization Fawad Hasan Fawad to oversee the process and expedite it on a fast-track basis. This decision comes as PIA grapples with a severe financial crisis and mounting debts, raising concerns about the national flag carrier’s ability to sustain its air operations.
During a meeting focused on matters related to PIA, the prime minister emphasized the urgent need to expedite the privatization process. The objective is to provide reliable services to users and elevate the standards of PIA to align with global airline standards. He called upon all relevant stakeholders to work together to promptly resolve the issues related to privatization.
In the meeting, the prime minister received a briefing on the progress of the privatization process and extended a warm welcome to the new caretaker Minister for Privatization, Fawad Hasan Fawad, who joins the team during this crucial phase.
It’s worth noting that PIA’s financial crisis had led to concerns about its financial viability and ability to meet its financial obligations. However, there is some relief as PIA recently settled its disputes with the Federal Board of Revenue (FBR) over non-payment of dues, resulting in the unblocking of the airline’s bank accounts. PIA has assured the FBR of clearing all pending dues and submitted a written commitment to this effect. According to the FBR spokesperson, PIA is set to pay Rs2.5 billion this month as part of the agreement.
Previously, the administration of former Prime Minister Shehbaz Sharif expressed the intention to privatize PIA. However, the current caretaker government has directed relevant authorities to finalize a restructuring plan for the national flag carrier, indicating a potential shift in the approach to address PIA’s challenges.
