ISLAMABAD: A day after the Pakistan International Airlines (PIA) flight operation was again hit by the worst-ever fuel crisis, caretaker Prime Minister Anwaar-ul-Haq Kakar on Monday directed the authorities concerned to expedite the process of privatisation of the national flag carrier.
During the past few weeks, the flight operations of the PIA have been severely affected with multiple flights cancelled due to the unavailability of fuel amid the prevailing financial crunch faced by the national carrier.
As many as 26 flights have been cancelled from Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar, and other cities after the Pakistan State Oil (PSO) slashed its fuel supply to the PIA on Sunday (yesterday), sources said.
Chairing a review meeting on the financial crisis of PIA, the prime minister stressed the finalisation of the privatisation process within the stipulated time.
PM Kakar sought regular compliance reports to be submitted to him in this regard. He said the government would continue extending support to the PIA till the completion of its privatization, adding that the state-owned enterprises (SOEs), which were facing financial loss, would be privatised to save the national exchequer.
The premier was given a briefing on the financial situation of PIA. In August 2023, the Cabinet Committee on Privatisation (CCoP) approved to place PIA on an active list of privatisations following an amendment approved by the parliament and also granted its assent to hire financial adviser for transaction of PIA’s Roosevelt Hotel, New York.
According to top official sources, the PIA was converted from a corporation into a public limited company registered under the Companies Ordinance, 1984.
So the legislative process was undertaken in 2016 through the joint session of parliament that passed PIAC (Conversion) Act, 2016, whereby, PIAC was converted into a public limited company, namely Pakistan International Airlines Corporation Limited (PIACL).
However, one major amendment i.e. ‘Explanation’ in Sub-section 4 of Section 4 was incorporated in the said Act by parliament restricting the federal government from transferring management control in the airline business of PIACL while retaining at least 51 percent shares in such entity.
