PIA, other loss-making SOEs: PM for accelerating privatisation process
ISLAMABAD: Caretaker Prime Minister Anwaar-ul-Haq Kakar on Wednesday directed the Privatization Commission to accelerate the process of privatisation of Pakistan International Airlines (PIA) and other loss-making state-owned enterprises (SOEs).
The caretaker premier was presiding over a high-level meeting regarding PIA and was given a detailed briefing on various issues of PIA. He further directed that transparency in the privatisation process should be ensured.
The prime minister expressed concern over the delay in decision making on PIA matters. He said that the country is suffering from economic problems and the loss of national institutions is causing these problems to increase.
SOEs running into losses add to economic woes: PM Kakar
It is no longer possible to meet the deficit of these institutions from taxpayers’ money, he said, adding that the reforms of the aviation sector will provide the best travel facilities to the people.
Haq further stated it is very important to determine those responsible for the loss so that steps can be taken for their redressal.
The meeting was informed about the financial situation of PIA and the progress of the privatisation process. It was told that all obstacles in the privatisation of PIA have been removed.
An official on condition of anonymity said that as per documents, the PIA debt has now reached an unmanageable level. As of 31st December 2022, the PIA’s debt and liabilities stood at Rs743 billion which is five times more than the total value of its assets. The PIA’s total losses for the last financial year stood at Rs86.5 billion, out of which, Rs11 billion were operational losses. If the situation continues PIA’s debt and liabilities will rise to Rs1,977 billion and its annual losses will rise to Rs259 billion per annum by 2030.
The meeting was attended by Federal Minister for Privatisation Fawad Hasan Fawad, Adviser to Prime Minister Ahad Khan Cheema, and relevant officials.
Copyright Business Recorder, 2023
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