ISLAMABAD: The liabilities of the state-run Pakistan International Airlines (PIA) might have touched Rs480 billion-mark. The government is compiling its fresh losses and liabilities figure which were earlier at Rs324 billion by end December 2015, Federal Minister for Privatisation Daniyal Aziz said.
“The PIA liabilities were recorded at Rs324 billion by the end of December 2015,” said the minister while briefing the National Assembly’s Standing Committee on Privatisation, which was held under the chairmanship of Syed Imran Ahmed Shah, MNA.
The government is compiling the data of losses and liabilities of PIA occurred by the end of December last year, he added. The minister said that PIA liabilities are around Rs324 billion as according to the data available of 2015. However, he said that these liabilities might have now reached to Rs480 billion as the national flag carrier is facing around Rs150 million loss every day.
Aziz shared the plan approved by the Cabinet Committee on Privatisation regarding Privatisation of PIA. He briefed on the procedural steps and recommendations made by the Financial Advisory Consortium (FAC) for Privatisation of PIA and the steps had been taken up by the ministry. He informed the committee about the historical background of PIACL transaction, formational of restructuring and divestment strategy and its implementation (Phase-I), facilitating private sector partnership in the core operations of PIACL leading to successful closure of the transaction. He told about the statutory provisions of PIACL (Conversion) Act, 2016.
He briefed the restructuring plan of PIACL through which PIA Investment, Hotel and Real Estate which shall be segregated from Aviation, Engineering, Landing & Handling, TES & Healthcare and Flight kitchen. He briefed regarding the core and non-core liabilities of PIACL and options/modes to implement this segregations.
He also briefed the committee about the classification of assets and liabilities contemplated under Section 4 of PIACL (Conversion) Act. He said the current status of PIACL (Transaction) and the efforts for the extension of adviser. He also said the decisions of CCoP regarding the transmission of scheme of Arrangement/Orders to PIACL, pursuant Section 4 of PIAC (Conversion) Act, 2016, valuation of assets pertaining to airline business, advertisement seeking expression of interest of private sector partners, shareholder agreement and PC to re-engage the services of financial advisers under the same terms and conditions.
He said privatisation of the Utility Stores Corporation is relevant to the Phase II of the privatisation of entity list; hence, the plan of Privatisation of the Utility Stores Corporation is not an active plan.
Therefore, the briefing on the privatisation of the Utility Stores Corporation is not possible. The committee appreciated the overall performance of the ministry and its briefing. At this moment, Munaza Hassan, MNA/Member, dissented with the briefing on the privatisation of PIACL.
The committee decided that the ministry shall brief about the privatisation of the Pakistan Postal Services in its next meeting.
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