The Pakistan Caretaker Government (PCG) decides to privatize PIA (Pakistan International Airlines) after making it debt-free. PCG made this announcement on Oct 3, 2023.
Caretaker Privatisation Minister Fawad Hasan Fawad says that Pakistan will appoint an adviser to draft a plan to privatize its money-losing national airline (PIA).
Fawad Hassan Fawad told reporters in Islamabad yesterday that his government will appoint a single transaction advisor and this appointment will probably be finalized today Oct 11, 2023. He said the country’s poor $350 billion economy couldn’t afford the further delays. He also said that the financial adviser’s report will enable the government to make the final decision.
The Country Director of the World Bank, Najy Benhassine called the privatization minister to discuss the developments of the privatization process.
The Country Director of @worldbank Najy Benhassine called on Minister for Privatisation. Discussion revolved around range of support areas crucial for successful execution of #privatisation process.@moib_Official@fawadhasanpk pic.twitter.com/7QEVqOcVXX— Ministry of Privatisation (@PrivComPakistan) October 5, 2023
PCG was also going to privatize Pakistan Steel Mills (PSM) and power distribution companies (DISCOs) with PIA to lessen the burden on the national economy. But now PCG has withdrawn its decision to privatize these loss-making entities.
Caretaker Privatisation Minister Fawad Hasan Fawad says there are several complications over the privatization of these loss-making entities except PIA. Because PIA is a clean entity now by making it free from legacy loans. So, only PIA would be privatized for now.
Federal Minister for #privatisation Fawad Hasan Fawad addressing to a press conference about restructuring and revival of #PIA and Pakistan Steel Mills. #Pakistan #PSMC #CAA pic.twitter.com/QIaTOqkvM8— Ministry of Privatisation (@PrivComPakistan) September 21, 2023
The privatization of PIA comes after Pakistan agreed to devise a policy on loss-making entities. This policy is part of fiscal discipline plans with the International Monetary Fund (IMF).
Fawad also said the government is trying its best to keep the PIA flying. It was a very difficult job. He revealed no financial institution was ready to give any more money to PIA. PIA is near to collapse that is why, the Pakistan Caretaker Government decides to privatize PIA.
The Pakistan Caretaker Government appointed Fawad Hassan Fawad as the Federal Minister for Privatization on Sep 16, 2023. Fawad is a Pakistani public policy practitioner, civil servant, diplomat and poet.
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