Earlier order recalled: Prior approval a must for PIA sell-off, SC tells govt

ISLAMABAD: The Supreme Court recalled its earlier order directing the government not to privatise Pakistan International Airlines (PIA) without its prior permission.

The apex court had previously stayed the privatisation of PIA, but today’s ruling removes the block and allows the process to continue.

A six-judge bench, headed by Justice Aminud Din, and comprising Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Hassan Azhar Rizvi, Justice Mussarat Hilali and Justice Naeem Akhtar Afghan, on Thursday, heard various cases, including PIA privatisation, contempt petition against Justice Mansoor, and a case of land allotment to IT university by the Capital Development Authority (CDA) in Islamabad.

PIA sell-off: FA fees cost kitty Rs1.95bn

During the hearing, the additional attorney general (AAG) informed that the apex court had allowed the airline’s management to hire new professionals. “But since the government had started the privatisation process, therefore, the recruitments could not be made.”

The AAG informed the bench that the privatisation of the national flag carrier, which had earlier stalled, had now resumed. “The ban imposed on the airline’s flight operation to Europe has been lifted as well,” he added.

Justice Amin remarked that now on the second attempt on privatisation process, could potentially fetch higher rates for the airline.

Justice Mandokhel questioned whether the government might risk violating a previous Supreme Court order that required the privatisation process to be conducted transparently and with the court’s confidence.

The AAG assured the court that an application had been filed to seek its confidence for the privatisation process. Justice Mandokhel advised the government to ensure the process is conducted efficiently and in good faith.

The court subsequently disposed of the petition, withdrawing its earlier directive to halt the national airline’s privatisation. A three-judge bench, headed by former Chief Justice Mian Saqib Nisar, on April 12, 2018, directed the federal government not to privatise PIA without its prior permission. It had also ordered the former managing directors (MDs) of the national flag carrier not to leave the country without informing the apex court.

Attorney General of Pakistan Ashtar Ausaf had informed the court that no privatisation of PIA is taking place and even if that happens then 51 per cent shares of national flag carrier will still be with the government. He informed that there is decision of Council of Common Interests (CCI) for the privatisation of PIA. He said unless the finances of the airline are streamlined and losses end the privatisation could not be done.

According to 10 years audit report (2008 to 2018) of the national carrier, which the then PIA legal advisor Ahmed Rauf presented before the Supreme Court in April, 2018, the airline suffered Rs360.39 billion loss during the last 17 years.

Copyright Business Recorder, 2024