Minister allays concerns over PIA privatisation

The privatisation of PIA will proceed, according to Federal Minister Aleem Khan on Monday, but it will need a new strategy and “big-hearted” choices.

A Senate committee, chaired by Senator Talal Chaudhry, voiced concerns over the slow pace of Pakistan International Airlines (PIA) privatisation.

Aviation Minister Ghulam Sarwar Khan revealed that an unsatisfactory consultant had delayed progress, but a new one would be hired to advance the process.

Khan emphasised the need to address PIA’s financial and operational challenges, including Rs830 billion in losses.

Of this, Rs623 billion has been moved to a Holdco company for liability management. Despite efforts to stabilise the airline, it incurred Rs45 billion in losses last year.

The minister compared PIA’s situation to Air India, which succeeded in privatisation after multiple attempts, and stressed the importance of thorough reforms.

High GST rates and taxes on aircraft purchases were identified as barriers deterring investors. Senator Khalida Ateeb called for operational improvements to attract buyers.

The committee also reviewed privatisation efforts for power distribution companies (Discos), with the process for three Discos expected to complete by January 2025.

Alleged corruption at Faisalabad Electric Supply Company (Fesco) will be addressed in the next meeting.