Pakistan is facing an economic crisis due to the instability of democracy and the involvement of the establishment in economic affairs. In this regard, like other institutions, Pakistan International Airlines’ (PIA) has been deeply facing a financial crisis for the last few years. Incompetent Caretaker PM Anwaar-ul-Haq Kakar directed on Monday the authorities concerned to accelerate the procedure of privatization of the national flag.
During the past couple of weeks, the flight operations of the PIA have been severely affected, with several flights cancelled due to the unavailability of fuel amid the main financial crisis faced by the PIA.
More than 26 flights were cancelled from Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar, and other cities after Pakistan State Oil (PSO) reduced its fuel supply to the PIA on October 22, 2023, Bol News sources said. We would like to mention here that the caretaker PM does not have the authority to privatize any institution.
During a review meeting on the financial crisis of Pakistan International Airlines, the caretaker PM stressed the finalization of the privatization process within the specified time. PM Kakar wanted regular compliance reports to be submitted to him in this regard.
Caretaker PM said the government would endure spreading support to PIA till the completion of its privatization. Kakar said the state-owned enterprises (SOEs), which were facing financial losses, would be privatized to save the national exchequer. The caretaker PM was given a session on the financial situation of PIA.
In August 2023, the Cabinet Committee on Privatization (CCoP) permitted PIA to be placed on an active list of privatizations following a revision approved by parliament and also granted its agreement to hire a financial adviser for the transaction of PIA’s Roosevelt Hotel in New York.
As per confirmed official sources, the PIA was renewed from a corporation into a public limited company registered under the Companies Ordinance, 1984.
So the lawmaking process started in 2016 when the joint session of parliament passed the PIAC (Conversion) Act, 2016, whereby PIAC was changed into a public limited company, namely Pakistan International Airlines Corporation Limited (PIACL).
But one major change, i.e., ‘Explanation’ in Sub-section 4 of Section 4, was incorporated in the said Act by parliament, confining the federal government from transferring management control in the airline business of PIACL while retentive at least 51% of shares in such an object.