PIA faces enforcement of Essential Services Act amid privatization drive

ISLAMABAD – Pakistan International Airlines (PIA) finds itself under the jurisdiction of the Pakistan Essential Services (Maintenance) Act, 1952, as the government moves forward with plans for the carrier’s privatization.

Enforced for a duration of six months, the act grants PIA the power to take disciplinary measures against employees failing to comply with lawful directives.

This isn’t the first instance of the act’s enforcement; the national carrier has encountered similar measures previously, notably during employee protests that disrupted flight operations.

Issued by the Ministry of Interior, the act’s enforcement aims to ensure the smooth functioning of the airline, with penalties applicable to employees disobeying lawful commands, abandoning their duties without valid cause, or disrupting operations.

Under the legislation, employees found guilty of offenses could face imprisonment for up to one year and potential fines.

Amidst the privatization drive, eight business groups have submitted Expressions of Interest (EoI) for acquiring PIA. These entities, including Fly Jinnah, Shonksi China CIG Ltd, and others, have submitted their Statements of Qualification and EoIs within the deadline.

The decision to privatize PIA was initially taken during the previous caretaker regime, led by Anwar Ul Haq, with a consultant hired to oversee the process. Although the incumbent government aims to conclude the privatization process by June, potential delays remain a possibility.

Meanwhile, the government has also decided to outsource three airports across the country, including Allama Iqbal International Airport, Jinnah International Airport Karachi, and Islamabad International Airport. Plans are underway to outsource Islamabad’s airport for a duration of 15 years, with the process already in motion.