Privatisation Comission Board Decides to Re-start PIA Privatisation Process

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Abbas Ali
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Privatisation Comission Board Decides to Re-start PIA Privatisation Process

Post by Abbas Ali » Sat Nov 04, 2017 11:14 am

By Shahbaz Rana

Published: November 3, 2017

ISLAMABAD: In a major policy shift, the Privatisation Commission (PC) board on Thursday decided to reinitiate the process of privatising Pakistan International Airlines (PIA).

The privatisation of PIA is the unfinished agenda of the previous IMF bailout of $6.2 billion.

The board decided to sell majority stake in PIA to private parties, requesting the government to amend the PIA law that barred transfer of ownership to private hands.

A joint session of parliament had passed the PIAC Conversion Act 2016 whereby the entity was converted into a public limited company.

Under pressure from the PPP, the government inserted sub-section 4 into Section 4 of the PIAC Act that restricts the federal government from transferring management of the airline and binds it to retain 51% shares in PIA.

The privatisation minister said the PC board recommended that this section must be amended to pave the way for PIA privatisation. Despite making efforts, PIA’s affairs had not improved and the management had started closing its routes, he said. On Wednesday, the ECC approved a Rs13.6-billion bailout package for PIA.

Source: tribune.com.pk
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Amaad Lone
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process

Post by Amaad Lone » Sat Nov 04, 2017 1:28 pm

What privatisation????????

0 x 1,000 =0

Government will hand over the airline to someone after writing off the loans.

In the ten years of democracy PIA has been destroyed by one experiment after another.
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Abdulrafeysiddiqui
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process

Post by Abdulrafeysiddiqui » Sun Nov 05, 2017 1:30 am

In Pakistan, privatization of any government organization means to hand it over to political allies or friends and if the same thing happens to PIA after privatization process, then its of no use. Nothing better will happen and PIA won't prosper. If actual privatization process is carried out honestly by government and is handed over to competant authorities then we can go back to 60s era.

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Abbas Ali
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process

Post by Abbas Ali » Sun Nov 05, 2017 11:43 am

Remarkable growth and improvements seen in services and performance of banks like HBL and MCB after their privatization.

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arshad.altaf
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process

Post by arshad.altaf » Mon Nov 06, 2017 2:10 pm

Already mentioned by colleagues on this forum that the first condition any purchaser would put in will be related to significant number of lay offs and that will most certainly not be palatable to the government. This is compounded by another issue which is black hole finances. Just these two are good enough reasons to dissuade any potential purchaser.

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