ISLAMABAD – The caretaker federal government has confirmed the appointment of a financial adviser to privatize the state-owned Pakistan International Airlines (PIA).
In this regard, a Privatization Board meeting was chaired by the federal minister for privatization Fawad Hasan Fawad, which approved the appointment of the financial adviser for the privatization of the PIA Corporation.
A consortium led by Ernst & Young was declared the successful bidder, read an official statement on Friday, adding that the board also appreciated the transparency of the procedure regarding the selection.
The national carrier has been struggling to stay afloat due to financial challenges which have been going on for years now. The recent biggest blow to the airline was a statement by the former Aviation Minister Ghulam Sarwar Khan who said the pilots of the carrier had fake licenses.
Earlier, the caretaker regime had decided to continue the process of privatization of the airline. Last month, the government approved Rs8 billion ($28.8 million) in financial support for the carrier, giving some observers hope that the government might reverse the decision about privatization.
Meanwhile, Caretaker Minister for Parliamentary Affairs Murtaza Solangi has also confirmed that PIA is present on the privatization list.
Responding to a calling attention notice in the Upper Chamber of the Parliament on Friday, the minister said the previous government had devised a privatization plan and the caretaker government is implementing it. He mentioned that the halted flight operation of the PIA has been revived after arranging the funds.
There have been demands for privatizing the national carrier due to its economic nonviability. Former Aviation Minister Khawaja Saad Rafique also stressed the importance of privatizing the carrier or else it would have to shut operations.
In the final days of the PDM regime, it was also decided to privatize loss-making Pakistan International Airlines during a meeting of the Cabinet Committee on Privatization chaired by then Finance Minister Ishaq Dar.
The committee “after deliberation decided to include Pakistan International Airlines Co. Ltd. in the list of active privatization projects of the ongoing privatization program, following an amendment in the law by the Parliament,” a finance ministry statement had said.
