PM isn’t very happy with the performance of the PIA staff the reason being that for the last several years the PIA has been in the decline. In 2011 the company’s losses were sky high; they rose from Rs18bn to almost Rs40bn this year. Corruption, mismanagement, an aging fleet, political and bureaucratic interference is also the cause of deterioration of the airline. In a recent meeting Nawaz government has signed, with the IMF a medium-term plan, to restructure the company which is being developed, which will strip it of its liabilities and shift them to a separate company named ‘ PIA2’ by the end of this calendar year.
It is expected that the government will pay off the airline’s loans and retain only those liabilities it can service. The proposed plan also envisages an equity injection in the company and the launch of a voluntary handshake to shed its excessive staff and transfer of 26pc shares to strategic buyers by the end of the present fiscal year. On the whole the plan appears ‘do-able’. But its success will largely hinge on its transparent and honest implementation.
M. OSAMA AFNAN HANAFI,
Karachi, September 13.