Aviation Minister Khawaja Saad Rafique has issued a warning that Pakistan International Airlines (PIA) could face substantial losses of Rs259 billion by 2030 if immediate corrective measures are not taken. One proposed measure is to transfer administrative control of the airline to the private sector. Rafique made these recommendations when presenting “The Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023” on the Senate floor.
In order to sustain PIA, Rafique emphasized the importance of Foreign Direct Investment (FDI) and granting administrative control to the private sector. He highlighted that the airline is currently burdened with a substantial debt of Rs742 billion.
However, due to strong opposition from Senators, the bill has been referred to the relevant standing committee for further review. The Senate Chairman acknowledged that injecting FDI and transferring administrative control to the private sector are essential for making PIA a profitable entity.
During the Senate proceedings, PTI lawmakers raised concerns about quorum, leading the chairman to call for a fifteen-minute break. Once the quorum was satisfied, the proceedings resumed.
The bill suggests an amendment to Section 3, which states that “the shareholders of the company shall be deemed to own and hold the same number of fully paid shares with such rights and privileges, including as to class, kind, and face value, as they owned, and the Federal Government may, during the validity period and by notification in the official Gazette, issue fresh shares or cancel any shares as it may deem fit.”
By taking urgent action to privatize PIA, it is hoped that the projected losses can be averted, ensuring a more sustainable future for the airline.