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
Privatisation Comission Board Decides to Re-start PIA Privatisation Process
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process
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.
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.
P.I.A
God's International Airline
God's International Airline
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process
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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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process
Remarkable growth and improvements seen in services and performance of banks like HBL and MCB after their privatization.
Abbas
Abbas
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Re: Privatisation Comission Board Decides to Re-start PIA Privatisation Process
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.
Arshad
Arshad