By Staff Reporter
ISLAMABAD: Pakistan plans a fresh attempt to privatize its debt-ridden national carrier, Pakistan International Airlines (PIA), Prime Minister Muhammad Shehbaz Sharif said on Monday, after a previous bid failed in October.
“A fresh effort is being made for the privatization of PIA, with an invitation extended to domestic investors from Quetta, Peshawar, Karachi, and other cities to participate in the process to restore PIA’s former glory from the 1960s,” Sharif said during the inauguration ceremony of a six-star hotel in Islamabad.
The previous bid to privatize PIA failed in October when only one bidder, Blue World City consortium, participated in the final bidding and refused to match the minimum price of Rs85 billion, instead offering Rs10 billion.
“The government aims to attract domestic investors from across the country through a transparent bidding process” Sharif said, with the goal of restoring PIA’s former glory from the 1960s.
PIA, saddled with billions of dollars in debt, has struggled to stay afloat amid mismanagement and corruption allegations. The airline posted losses of $270 million in 2023, according to local media reports. Its liabilities were nearly $3 billion, about five times the total worth of its assets.
Recently, PIA resumed its operations in Europe, with the first flight to Paris on Jan. 10, following a hiatus of four years.
The airline was restricted in 2020 by the European Union Aviation Safety Agency (EASA), United Kingdom (UK) and the United States (US) after Pakistan launched an investigation into the validity of pilots’ licenses issued in the country, following a PIA plane crash in Karachi that killed 97 people. EASA lifted its ban on PIA in November last year, however, the airline remains barred from flying to the UK and the US.
Sharif’s announcement came as Pakistan seeks to implement economic reforms under an International Monetary Fund (IMF) program.
“We will take PIA back to the slogan ‘Great People To Fly With’,” Sharif said. “This is difficult but not impossible.
Separately, Sharif expressed optimism about Pakistan’s economic growth prospects, citing a drop in inflation below 5 percent and a decrease in the policy rate of banks to 12 percent.
The government is taking measures to eliminate hurdles and challenges in the investment sector, and electricity prices will see a significant reduction in the coming months,” the PM said. “Exports are increasing, and there is growth in IT exports and remittances. The country’s economic growth journey is beginning. Further progress is needed in the sectors of agriculture, IT, industries, and mines and minerals.”
The Prime Minister emphasized that until electricity prices decrease, industries, agriculture, and exports cannot progress. “The government is working hard, and in the coming months, a significant reduction in electricity tariffs will pave the way for Pakistan’s economic growth, making exports and industries more competitive.”
Regarding cost-cutting measures, Sharif said that efforts for downsizing and rightsizing are in full swing. “The Pakistan Public Works Department (Pak PWD), which was a hub of corruption, has been shut down. Numerous government institutions are being closed to reduce expenses.”
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