Pakistan polls 2024: Loss-making national airline PIA privatised by govt days ahead of elections

The government of Pakistan has finally approved the privatisation of its national carrier, Pakistan International Airlines (PIA), despite the top poll body’s efforts to halt the process. The move to privatise the loss-making airlines was set in motion just two days before the general elections. The government hired a financial adviser to restructure the entity who has recommended the bifurcation of the national carrier into two companies – TopCo and HoldCo. On Tuesday, Pakistan’s caretaker government headed by Prime Minister Anwaar-ul-Haq Kakar took the call to finalise the details of the privatisation process. What was decided in the meeting? By splitting PIA into two companies, basic operations like engineering, ground handling, flight kitchen and training will be handled by TopCo while Precision Engineering Complex, PIA Investment Limited and subordinate departments and properties will be overseen by HoldCo. Privatisation Minister Fawad Hasan Fawad informed the cabinet that the privatisation of PIA would result attract more investments toward the aircraft, hence boosting the economy. During the meeting, it was also ordered that settling disputes regarding the payment of dues to various government stakeholders against PIA should be completed as soon as possible. Last year, the cash-strapped nation decided to overhaul all of its loss-making state-owned enterprises under a deal with the International Monetary Fund (IMF) for a $3 billion bailout. The decision to privatise PIA was taken just weeks after the government signed the deal with IMF.

The caretaker administration, which took office in August to oversee the Feb. 8 election, was empowered by the outgoing parliament to take any steps needed to meet the budgetary targets agreed with the IMF. Which other entity has been privatised?  The federal cabinet has also signed off on the privatisation of the First Woman Bank. The bank was first put up for privatisation in 1996 after it reported heavy losses owing to exchange rate exposure on faulty foreign investments, according to a report by The News. Since then, many attempts have been made to finalise the privatisation. However, most such attempts were quashed by the Women Action Forum (WAF).