PIA Privatisation Plans with Zero Liabilities by Minister Khan

In a significant development regarding the future of Pakistan International Airlines (PIA), Federal Privatisation Minister Abdul Aleem Khan has indicated the possibility of selling the airline to a private buyer with "zero liabilities." This announcement comes in the wake of ongoing challenges faced by PIA, which has been struggling under a massive debt burden exceeding Rs830 billion. The minister's remarks were made during a press conference held on Sunday, where he also opened the door for provincial governments to take control of the airline and manage it more effectively.

Minister Khan explained that approximately Rs600 billion of PIA's liabilities have been parked in a holding company, leaving around Rs200 billion that would need to be transferred to any potential private buyer. He acknowledged the government's previous failed attempt to privatise PIA, stating that a new framework might be necessary to clear these liabilities and present a "clean PIA" for sale. This comes after the recent embarrassment of a failed bidding process, where the only bidder, the Blue World City consortium, offered Rs10 billion—far below the government's minimum expectation of over Rs85 billion.

In light of this situation, at least two provincial governments have expressed interest in taking over PIA. During the press conference, Khan mentioned that the Khyber Pakhtunkhwa government had already submitted an expression of interest. He also noted that Punjab Chief Minister Maryam Nawaz Sharif had discussed the possibility of purchasing PIA with her father, Nawaz Sharif, the PML-N president. Khan encouraged all provinces, including Sindh and Balochistan, to consider this opportunity, emphasizing that professional management is crucial for the airline's success.

While discussing the privatisation process, Khan stated that the final decision would rest with the Prime Minister, whether to sell PIA to a province or to restart the privatisation process. He addressed criticism regarding his absence from the recent bidding event, explaining that he was in Saudi Arabia for investment discussions. Khan defended the transparency of the bidding process, attributing past failures to his predecessors, who he claimed had "destroyed" PIA.

According to Khan, the framework for PIA's privatisation was established by the caretaker government, and any necessary adjustments would be made to facilitate the process. He reiterated that PIA is a "national asset" and should not be sold at a "throw-away price." The minister expressed optimism that with new aircraft and skilled professionals, PIA could be transformed into a profitable entity.

In addition to discussing PIA, Khan, who also serves as the communications minister, highlighted the expected profit of Rs50 billion for the National Highway Authority (NHA) by the end of the year, a significant increase from previous revenues. He also mentioned the abolition of 3,500 new jobs at Pakistan Post, which he claimed saved Rs2.8 billion.

The future of PIA remains uncertain, but the government's willingness to explore various options, including provincial management and private ownership, reflects a proactive approach to addressing the airline's longstanding issues. As discussions continue, stakeholders will be watching closely to see how these developments unfold and what they mean for the future of Pakistan's national carrier.