Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Today, Supreme Court Karachi Registry in its hearing of PIA privatization case issued notices seeking reply from Federal Government, Defence Ministry and Chairman PIA within a week. The court has asked whether government is going to privatize PIA.

The court took notice of reports claiming that PIA's profit-making routes have been handed over to other airlines including airblue and sought clarification on this matter.

The court also issued stay order against new appointments in the airline till next hearing in week starting from April 9.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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'PIA is in so much debt that no one will be ready to own it even for free'

Peshawar:
A member of the Standing Committee on Cabinet Secretariat said federal minister Danyal Aziz was talking about privatisation of the PIA, but the airline is in so much debt that no one will be ready to own it even for free.

He said the government should have to take burden the debt before the PIA’s privatization. “If the parliament has decided not to sell the national flag carrier then why Aziz is issuing dates for its selloff,” he asked.

The chairman of the committee said the incumbent government is not in the position to outsource the PIA right now since no decision has been taken in this regard; however, the next government might do this. “It does not seem to happen [during the PML-N government’s] tenure,” he said.

Source: tribune.com.pk
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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PIA: PC invites fresh EoI

WASIM IQBAL & NUZHAT NAZAR

ISLAMABAD:
Privatisation Commission has invited a fresh expression of interest (EOI) from Financial Consultant for a period of six months for the privatization of Pakistan International Airlines (PIA).

Sources said to proceed ahead with the privatization of PIACL, PC will have to undertake necessary actions to hire fresh Financial Advisors (FA) or re-engage the services of a former FA whose financial advisory services agreement expired on October 3, 2017.

In October 2014, PC appointed a consortium of M/s Dubai Islamic Bank, IATA Consulting, Deloitte, HaidermotaBNR, Freshfields Bruckhaus Deringer, Abacus Consulting, APCO, and Prestige as FA for the transaction.

The Privatisation Ministry reiterated its commitment to privatize the airline by selling its 49 per cent shares besides separating core and non-core business of the national flag carrier in a National Assembly’s Standing Committee on Privatization held in March 2018.

The opposition parties have expressed serious concern at the government’s decision to proceed with PIA privatisation a mere 54 days before completion of its term.

An official of PC told Business Recorder that six time-bound decisions relating to PIA made by the Privatization Commission’s Board are awaiting approval from Cabinet Committee on Privatization (CCoP) in privatization since the first week of March.

1- Transmission of scheme of arrangements/ order to PIACL pursuant to section 4 of the PIAC (Conversion) Act within three weeks.

2- The request by PIACL to federal government in accordance with section 4 of the PIAC (Conversion) Act to be issued within four weeks.

3- Valuation of assets pertaining to airline business of PIACL to be carried out pursuant to sub-section 5 of the section 4 of the PIAC (Conversion) Act, within 6 weeks.

4- Advertisement seeking EoI from private sector partners and investors for minority shareholding in PIACL to be issued within three months.

5- Privatization Commission has invited fresh EOIs for financial advisor and also negotiating with former FA to re-engage them under same terms and conditions.

6- PC to re-engage the services of FAs under same terms and conditions.

The FA will be responsible for strategic financial planning, financial forecasting and value creation in the corporation’s development.

In November 2, 2017, the PC board decided to reinitiate the process of privatising PIACL.

Secretary PC Syed Irfan Ali Shah said that divestment of PIA would be completed at the earliest (projected sale of 49 percent shares held by government) and a shareholders’ agreement will be executed to outline the methodology that envisages management control retained by the federal government in line with best international practices.

The secretary maintained that parliament has given PC the mandate to complete the transaction of PIA by April 15, 2018. He added that PC still has to re-engage the services of FA, while PIA also requires three months to look into the draft implementation plan submitted by FA and come up with a viable option.

Earlier, Daniyal Aziz briefed media about the different phases of PIA’s privatisation process, arguing that the Phase-1 of the restructuring of PIA has been completed, and Phase-II is now in process.

He explained that as per the law, PC is completing all the legal and financial prerequisites for the privatisation of PIA and the process may not be completed during the tenure of the present government.

A senior Member of PC Board on the condition of anonymity told Business Recorder that Privatization Commission had stopped working on privatization of PIACL, Pakistan Steel Mills, Mari Petroleum and SME Bank after former Chairman PC Board Muhammad Zubair was appointed Governor Sindh in January 30, 2017.

He maintained that all the working on privatization of PIA, Mari Petroleum and SME Bank was held in Cabinet Secretariat; he further claimed that no meeting of PC Board was held during the last three months.

He further said that Rs 50 billion envisaged in budget 2017-18 through privatization proceeds was not achievable.

Responding to another question regarding privatization programme of Pakistan Muslim League (N), he said that the next government would come up with its own privatization programme and it could reinitiate the whole process of privatization of PIACL.

Source: DAWN
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Ishaq Dar's son was beneficiary of previous Financial Consultant. Now lets who gets it. Billions paid to previous FC gone down the drain.
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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According to DAWN News channel, today Supreme Court of Pakistan stopped the Government of Pakistan from privatizing PIA. The court asked the government to take court into confidence before making PIA privatization decisions.

Earlier, on the subject of privatization, the court was informed that the fifty-one percent of PIA shares will remain with the government after airline's privatization. The court asked how can the government nearing the end of its term privatize the airline and who will buy PIA with accumulated losses of 360 billion rupees.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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PPP won’t allow PIA ‘auction’

April 23, 2018

ISLAMABAD -
Pakistan People’s Party Chairman Bilawal Bhutto Zardari said on Sunday that Pakistan International Airlines (PIA) was the asset of the nation and his party will not allow it to be ‘auctioned’.

“PIA employees have put their trust in the Peoples’ Union which proves that the PPP is the party of the masses,” he said, according to a statement issued here.

He was talking to a delegation of PIA Peoples Unity led by Hidayatullah Khan, Ramzan Laghari and Sohail Mukhtar who called on him at Zardari House Islamabad. Syed Nayyar Bukhari, Farhatullah Babar and Senator Nawaz Khokhar were also present.

Labour leaders said that “jiyalas” of Benazir Bhutto will always be with the party and will continue to work towards the betterment of the masses.

Bilawal congratulated the office-bearers of the Peoples Unity and workers of the PIA and said that their success in union elections was “prelude to the party’s success in the next general election”.

Source: The Nation
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Losses accumulated by PIA are now over five hundred billion rupees, said Prime Minister Shahid Khaqan Abbasi in an interview today.

So far, three successive governments have failed to turnaround PIA in recent years. Government should not be running the airline, he said. As a government-owned airline PIA has to face certain restrictions and its management cannot work freely.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Forget three successive governments lets talk about yours...Mr. Abbasi.
You have doled out traffic rights to your favourite Qataris for God knows what reason...and now you say PIA management needs freedom from government? Shahid Abbasi, you have been going against PIA's interests eversince you were its Chairman. Remember the Cathay Pacific 747 deal? And the Sabre debacle? And,,,,,
You have few days left. Leave PIA alone.
Inshallah we will turn PIA around. We will change the ground realities back in its favour and it will prosper in that environment. Because we dont have any vested interests in the GCC countries nor are we going to take bribes from ME3 airlines for traffic rights.
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Adviser to the Prime Minster on Aviation Sardar Mehtab Ahmed Khan Abbasi and former Special Assistant to the Prime Minister on Aviation Capt. Shujaat Azeem have been directed to appear before Supreme Coure on May 8. A three-member bench headed by Chief Justice will hear PIA privatization case at the court.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Wow. At last Shujat Azeem coming to the docks. I have been trying to tell whoever would listen that this guy should be held accountable. Now lets see if he can hoodwink the supreme court. His conflict of interest being owner of Royal Airport Services and Monister for Aviation should be enough. He gave unfair advantage to Qatar and EY to hurt PIA. Hope supreme court sends him to the gallows.
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Sardar Mehtab Ahmed Khan Abbasi and Shaujaat Azeem appeared in Supreme Court hearing of case on PIA privatization today.

Economist Farrukh Saleem assisting the court gave briefing on PIA performance from 2008 to 2017. More than four hundred billion rupees are due to be paid by PIA. Expenses more than income is a reason for PIA losses. The court was also informed about perks and packages that caused airline losses.

There's also political interference in the airline. In PIA there are seven employees unions affiliated with political parties.

The court was also informed about aircraft spare parts in PIA inventory not used by the airline since 1990.

Information about loss due to grounded leased aircraft was also given to the court.

Taxpayer's money is wasted by PIA, the court remarked.

Next hearing of the case will take place fifteen days later.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Supreme Court has ordered authorities to include name of former Special Assistant to the Prime Minister on Aviation Capt. Shujaat Azeem in exit control list.

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The court has also ordered former managing directors to present report on airline's performance in last ten years.

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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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SC orders inquiry against ex-aviation head Shujaat Azeem, places name on ECL

ISLAMABAD:
Chief Justice of Pakistan Justice Saqib Nisar ordered on Tuesday an inquiry against the country's former aviation head Shujaat Azeem and directed to place his name on the Exit Control List (ECL) over his alleged mismanagement of the Pakistan International Airlines (PIA).

The orders were given as a three-member Supreme Court bench heard the suo motu case on the national airline’s reported privatisation and poor financial conditions.

After having been summoned, Azeem and the present aviation adviser, Sardar Mehtab Abbasi, appeared in court today.

Directing his ire at Azeem after receiving a briefing on the airline's poor financial health, the chief justice remarked that it is in his tenure that the major loss occurred, adding that Azeem cannot leave the country.

Azeem’s name was then ordered to be placed on the ECL and he was directed to submit a written response.

Moreover, the court ordered the National Accountability Bureau to file a reference against him after holding an inquiry.

When Azeem said the losses did not occur in his tenure, the chief justice wondered whether angels descended down and consumed billions of rupees then.

The chief justice also remarked during the hearing that the court is well aware how and why Azeem was made the aviation chief.

In the present government's tenure, Azeem served as the prime minister's aviation adviser as well as special assistant on aviation but had to resign from both posts after the Supreme Court's intervention on various illegalities.

Won't spare those who damaged PIA: CJP

Earlier as the hearing went under way today, the chief jutsice vowed not to spare those who damaged PIA.

Addressing Abbasi, the chief justice remarked that the PIA did not suffer in his tenure, adding that he should however review what all has occurred at the organisation.

At the start of the hearing, the chief justice inquired whether all former managing directors (MD) of the airline are present in court, noting that the court had only allowed two former heads to leave the country temporarily.

'Total losses stand at Rs360 billion'

Economist Farrukh Saleem, who was appointed amicus curiae by the court earlier, is giving a briefing to the bench on a projector.

In his briefing, Saleem informed the court that in 2008, PIA’s revenue operational cost was Rs129 billion, revenue was 89 billion while total losses stood at Rs73 billion.

Saleem added that from 2008 up till now, the loss has accumulated to Rs360 billion.

The chief justice observed that these losses occurred in the time of the last two governments.

He stated that in 2013 an aviation division was established with Azeem as its head.

Chief Justice Nisar regretted that taxpayers' money is consumed by PIA.

Terming political interference and association policies as reasons for the poor financial conditions, Saleem claimed employments in PIA were made on political grounds in the last 10 years.

Saleem informed that PIA has seven unions affiliated with political parties.

He added that 45 planes were bought on lease from 2008-17 while their grounding caused a loss of Rs6.67 billion.

Moreover, he stated that 287,000 tickets were distributed in 2013 which caused a loss of Rs5 billion. The chief justice inquired as to who all were given free tickets and added that they will look at this aspect of the case later.

The chief justice then inquired whether the MDs will submit a joint response to these statements or individual replies.

Former MDs barred from leaving country

At the last hearing of the case on April 12, Chief Justice Nisar had barred all PIA MDs from 2008 to 2018 from leaving the country.

The court had earlier ordered their placement on the Exit Control List (ECL) but later revised its directions.

Supreme Court restricts all PIA MDs of last decade from leaving country

The court also ordered the formation of a commission to inquire into the airline's alleged privatisation and ascertain reasons for its accumulation of losses.

As the hearing began, the PIA's counsel presented a 9-year audit record and informed that the airline suffered a loss of Rs44 billion in 2013, Rs37 billion in 2014, Rs32 billion in 2015, Rs45 billion in 2016 and Rs44 billion in 2017.

Referring to the airline's previous bosses, some of whom were present in court after being summoned earlier, Chief Justice Nisar remarked that "you all destroyed such a large asset...this is an injustice. Those who destroyed PIA are enemies and traitors".

Chief Justice Nisar also ruled that until the inquiry is completed, no former MD will leave the country without the court’s permission, adding that the court is thus not putting their names in the ECL.

CJP summons PIA MD along with 10-year audit report

All the MDs were also directed to appear at every hearing.

Supreme Court takes notice

On April 6, Chief Justice Nisar summoned former PIA MDs along with an audit report of the national flag carrier.

According to a Radio Pakistan report on April 1, the Supreme Court took notice of PIA's decision to give up profitable routes to other airlines and the intended privatisation of the airline.

The loss-making national airline has accumulated vast debt over several years owing to official mismanagement.

The present government earlier attempted to privatise part of the airline, including its management, but the plans were put on the backburner after opposition from other political parties and the airline's staff.

According to a Reuters report, PIA was among 68 state-owned companies earmarked for privatisation in return for a $6.7 billion International Monetary Fund package that helped the government stave off a default in 2013, when it came to power.

Despite some initial success, the process stalled in 2016 after staff protests caused havoc with PIA operations and the government passed a law that effectively made it impossible to privatise the airline.

Source: The News
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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Hail to the Chief...
Sir you need to get past two Aviation Secretries as well. Gardezi and Irfan Illahi. Also General Asif Yasin Malik.
Just check how much Royal Airport Services grew in Shujat Azeem's tenure and how many unnecessary frequencies ME3 airlines got in that period.
He is a slick SOB and will try to lie his way out of this situation but lets see how determined the Chief is.
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Re: Plan to Privatize PIA Before General Elections to be Presented at Cabinet Meeting

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They should also bring Brend to Pakistan
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