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LAHORE: Federal Privatisation Minister Abdul Aleem Khan has hinted at selling Pakistan International Airlines (PIA) to a private buyer with zero liabilities.
While addressing a press conference on Sunday, the minister also welcomed provincial governments to take over the airline’s control and run it in a professional manner.
He said that, as per the existing framework, around Rs600 billion of PIA’s liabilities of over Rs830 billion debt have been parked in a holding company, while the remaining Rs200bn will be transferred to the private buyer.
Mr Khan added that after failing in its first attempt to sell PIA, the government might devise a new framework to clear the Rs200bn liabilities and “sell a clean PIA” to a private buyer.
This might spur buyers’ interest, he said.
Aleem says govt couldn’t accept some of investors’ demands due to IMF deal
The minister also claimed that there were some demands by potential buyers, like zero GST on purchasing new aircraft, which the government couldn’t accept due to the deal with the IMF.
Provinces can buy PIA
The minister’s remarks came three days after the government had to face an embarrassment over the failed attempt to privatise PIA.
The process was stalled as the price of Rs10 billion quoted by the sole bidder — Blue World City consortium — was significantly less than the government’s minimum estimation of over Rs85bn.
Since then, at least two provincial governments have shown interest in taking over the airline’s control.
In his press conference, Mr Khan said the Blue World City consortium was shortlisted for participation in the auction by the consultant under the legal framework,“ he said, adding the company’s bid was not suitable.
He added that if provinces are interested in buying the national flag carrier, they can fulfil legal requirements.
He said so far, only the Khyber Pakhtunkhwa government has submitted an expression of interest for buying PIA.
Mr Khan said he also learnt through media that Punjab Chief Minister Maryam Nawaz Sharif had talked about buying PIA with her father and PML-N president Nawaz Sharif.
“If they [Punjab and KP governments] are interested, the provinces of Sindh and Balochistan may also show their interest. And if all provinces want [to buy the airline], they can do it and run PIA in a professional manner,” Mr Khan said.
“[The] provinces would have to bring professionals,” he said, calling professional management “vital to run PIA” effectively.
However, he added that the prime minister would make any decision to either sell PIA to a province or restart the privatisation process.
Mr Khan also responded to the criticism over his absence from the bidding event on Thursday.
He claimed that he was in Saudi Arabia “to meet a minister for investment in Pakistan”.
He said the Privatisation Commission completed the initial bidding process “in a transparent way” with the help of an international consultant.
He held his predecessors responsible for “destroying” PIA and said he couldn’t deviate from the privatisation procedure given to him.
According to Mr Khan, the framework for PIA’s privatisation was made by the caretaker government.
He added that any changes required in the framework to carry the privatisation process forward would be made.
All these things had happened before he took charge as privatisation minister, Mr Khan added.
He said PIA was a “national asset” and “could not be sold at throw-away price”. PIA can be “turned into a profitable organisation” if it gets new planes and best professionals, the minister said.
NHA profit
Mr Khan, who is also the communications minister, claimed that the National Highway Authority (NHA) will record a profit of Rs50 billion by year’s end for the first time.
“This year, NHA’s revenue would reach Rs110bn from Rs64bn,” he claimed. Regarding Pakistan Post, the minister said he had abolished 3,500 new jobs and it helped save Rs2.8 billion.
Published in Dawn, November 4th, 2024
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