Karachi, Sep 11 (PTI) The privatisation process of debt-ridden Pakistan International Airlines (PIA) is facing roadblocks as interested companies have sought several guarantees from the government before entering the bidding process on October 1.
The Pakistan International Airlines Corporation Limited (PIACL) is majorly owned by the government (86 per cent) while the remaining (14 per cent) is owned by private shareholders.
However, years of losses and accumulation of debts have forced the privatisation commission to finally go for the complete privatisation of the airlines which was once a profit earning venture before it fell prey to political interference and corruption.
At present, the total liabilities of the airlines is understood to be at least Pakistani Rs 834 billion with an oversized workforce.
“One of the main guarantees that interested companies are seeking from the government is to remove the condition that the current workforce of the airlines would not be disturbed for three years,” an official aware of the privation process said.
The well-informed official, who has served in the PIA, said the interested companies want the government to waive this condition and allow them to decide how much workforce to retain.
“These companies also want relaxations over the pensions which are paid to retiring employees,” he said.
The functioning of the airline, which was the first ever to get permission to operate flights to Beijing, has reached a stage where due to inadequate fuel, spare part supplies and organisational issues, international and domestic flights have to be cancelled on a weekly basis.
The companies that are to take part in the bidding process, including two Pakistani private airline companies, are also seeking guarantees that the government will first get clearance for resuming flights to the UK and Europe.
Aviation authorities in the UK and Europe have suspended PIA flights since 2020 when a PIA aircraft crashed in Karachi and findings revealed several safety and security lapses.
The companies that showed an initial interest to take part in the privatisation process have already completed audits of the airlines’ assets, liabilities, aircraft lease agreements, human resources, aircrafts viability etc.
Federal Minister for Defence Khawaja Asif informed the National Assembly on Monday that the privatisation process of the national airlines will be finalised by the end of October.
But another senior official in the airlines said the deadline would be difficult to meet since the companies are seeking many relaxations and guarantees including a major condition that no new taxes would be imposed on the airlines and its operations for the next 10 years.
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