There are strong indications that Pakistan International Airlines (PIA) may suspend its flight operations due to a severe financial crisis. According to reliable sources, the national airline requires a financial injection of Rs 7 billion to continue its operations. However, despite guarantees from the Pakistan government, banks have denied issuing funds.
In an effort to mitigate the financial crisis, Caretaker Prime Minister Anwaar-ul-Haq Kakar has instructed the relevant authorities to expedite the privatization process of PIA and other state-owned enterprises that are currently facing losses.
Enhancing Financial Affairs to Facilitate Privatization
Sources claim that a commission will be established to streamline the financial affairs of PIA through the implementation of a state-of-the-art system. This commission aims to improve the airline’s balance sheet, which will ultimately facilitate its privatization. The administrative control of the institution will continue to be under PIA’s management, while administrative affairs will remain with the Ministry of Aviation.
The Privatization Commission has also expressed its intention to make PIA’s accounts more transparent by December 31. PIA’s regulation matters will still be under the purview of civil aviation authorities.
The measures being taken by the government are aimed at addressing the financial crises and ensuring the long-term sustainability of PIA. However, the pending suspension of flight operations demonstrates the urgency of resolving the financial predicament faced by the national airline.
We will continue to monitor the situation and provide updates as the story develops.