ISLAMABAD - The Cabinet Committee on Privatisation has approved the bifurcation of the Pakistan International Airlines (PIA)’s non-core business and assets from Air Transport and Operations (ATO) before April this year, a move that may lead to privatisation of the national flag carrier.
Prime Minister Shahid Khaqan Abbasi chaired a meeting of Cabinet Committee on Privatisation (CCoP) at Prime Minister’s Office Friday.
The meeting discussed issues related to Pakistan International Airlines Corporation Ltd and Pakistan Steel Mills.
After a detailed presentation on PIA and the discussion that followed, the CCoP gave go-head to the proposal for initiating restructuring process in PIAC.
It was decided during the meeting to segregate core and non-core functions of the organisation.
Federal Minister for Privatisation Daniyal Aziz last month had announced that bifurcation of the PIA’s non-core business and assets from air transport-related operations will be completed by April, and the divestment transaction will be concluded before the government completes its tenure in June.
Under the parliament’s Pakistan International Airlines Corporation (Conversion) Act, 2016, the exercise of separating the core and non-core functions of PIA has to be completed within two years of the enactment of the law and this deadline was going to end in April this year.
The PIA accumulated losses were recorded at Rs 325 billion by March last year.
Earlier, Minister for Privatisation Daniyal Aziz gave a detailed presentation on various issues, including the financial challenges, faced by the two organisations and possible way forward for addressing those issues on permanent basis.
The prime minister observed that past mismanagement and neglect of the two important organisations had not only resulted in creation of huge financial liability, on annual basis, for the government but also caused great difficulties for the employees of the organisations.
The meeting discussed in details various administrative, financial and employees related issues of Pakistan Steel Mills (PSM).
A proposal for PSM entering into a ‘concession’ agreement with investors, on revenue sharing basis, also came under discussion.
The prime minister directed that all options should be explored and a comprehensive plan should also be worked out for addressing employees related issues.
Govt gives go-ahead to PIA privatisation