Privatization Commission's PIA Strategy Criticized

The Privatization Commission in Islamabad has come under scrutiny for its strategy regarding the national airline PIA, which has been facing financial challenges. The Commission's approach, particularly in the Expression of Interest (EOI) process, has raised concerns as it lacks provisions for guarantees on profitable routes or the sale of the Strategic Partnership Agreement (SPA) related to PIA's brand business and routes.

One of the key issues highlighted is the absence of restrictions on a potential foreign investor limiting PIA's operations to local and connecting destinations, potentially excluding profitable routes worldwide. The lack of clarity on this matter in the contract or deal has raised questions about the government's ability to intervene if such restrictions are imposed.

Aviation experts have estimated that the potential impact of such limitations could result in significant losses for PIA, with projections suggesting that ticketing and profits from foreign buyers could amount to approximately a billion dollars annually in foreign exchange.

In light of these concerns, stakeholders are calling for a reevaluation of the privatization strategy to ensure that PIA's long-term sustainability and competitiveness are safeguarded.