By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday appointed a committee led by Finance Minister Ishaq Dar to propose reforms for the loss-making national airline, Pakistan International Airlines (PIA).
The committee, which includes ministers for railways, aviation, planning, and commerce, as well as a special assistant to the prime minister and the secretary of aviation, will submit its recommendations to the cabinet after the Muslim festival of Eid al-Adha in July.
The prime minister was briefed by the aviation minister on the proposed route map and measures to revive PIA, which has been struggling with debt, operational inefficiencies, and competition from other airlines.
Sharif praised the efforts of the minister and said PIA had the potential to overcome its losses. He said the previous government had damaged PIA’s reputation and market share by making irresponsible statements about its safety and performance.
The prime minister said PIA needed to be run by professional and administrative experts on a profit-and-loss basis, and that the government’s role would be limited to policy-making and facilitating investors, businessmen, and companies.
PIA operates 31 aircraft, 13 of which are leased. The government approved a Rs4 billion bailout package last week to pay the interest cost on PIA’s legacy loan, but the airline still faces a cash crunch and rising debt servicing costs.
In April, the government increased its sovereign guarantees limit for PIA to Rs263.2 billion.
Analysts said successive governments and PIA managements have failed to turn around the airline, leaving privatization as the only viable option.
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