PM Kakar orders to expedite privatization of PIA

ISLAMABAD: Caretaker Prime Minister Anwaar-ul-Haq Kakar on Monday directed the authorities concerned to expedite the process of privatization of the national flag carrier Pakistan International Airlines (PIA).

Chairing a review meeting on the financial crisis of PIA, the prime minister stressed the finalization of the privatization process within stipulated time.

The prime minister sought regular compliance reports to be submitted to him in this regard. He said the government would continue extending support to PIA till completion of its privatization.

He said the state-owned enterprises (SOEs), which were facing financial loss, would be privatized to save the national exchequer.  The prime minister was given a briefing on the financial situation of PIA.

The meeting was attended by interim federal ministers including Shamshad Akhtar and Fawad Hussain Fawad, Adviser on Aviation Air Marshal (retd) Farhat Hussain, and officials concerned.

In recent day, the flight operations of PIA have been severely affected with multiple flights cancelled due to the unavailability of fuel amid the prevailing financial crunch.

On Sunday, as many as 26 flights have been cancelled from Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar and other cities after the Pakistan State Oil (PSO) stopped its fuel supply to the airline.

According to reports, as many as 18 flights were cancelled from Karachi, of which three were Islamabad-bound, whereas two Karachi-bound flights were also cancelled from Lahore and the federal capital, respectively.

The national carrier has been facing dire financial circumstances as the Federal Bureau of Revenue (FBR) froze all of its bank accounts for non-payment of taxes back in July earlier this year following which the airline was unable to cater to clear its dues owed to the PSO.

In September, the PIA had asked for an emergency bailout of Rs22.9 billion which was rejected by the Economic Coordination Committee (ECC).

The ECC also rejected the request for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against Federal excise duty (FED), and Rs0.7 billion per month which PIA pays to the Civil Aviation Authority (CAA) against embarking charges.

Earlier this month, PIA flight PK 790 was stopped in Canada on ground handling and fuel company complaints. The plane however was released after dues worth $200,000 were cleared by the airline.