Govt privatises loss-making PIA ahead of elections. The Pakistani federal cabinet’s recent approval of the restructuring plan for Pakistan International Airlines (PIA) just ahead of the 2024 general elections has sparked significant interest and debate.
The move, endorsed during a crucial meeting chaired by Caretaker Prime Minister Anwaar-ul-Haq Kakar, entails the division of the national carrier into two distinct entities — TopCo and HoldCo.
Under this restructuring, TopCo will oversee essential operations such as engineering, ground handling, flight kitchen services, and training, while HoldCo will manage assets including Precision Engineering Complex, PIA Investment Limited, and associated departments and properties.
Also read: Why is Pakistan privatizing PIA?
The decision, aimed at attracting potential investors to revitalize PIA, was presented to the cabinet by Caretaker Minister for Privatisation, Fawad Hasan Fawad.
The timing of this decision, just days before the upcoming elections, has drawn scrutiny, especially considering the longstanding financial challenges plaguing PIA.
The move aligns with previous announcements from the Pakistan Democratic Movement (PDM)-led government, which had expressed intentions to privatize the airline as part of broader fiscal reforms outlined in an International Monetary Fund (IMF) bailout agreement.
PIA has been mired in crisis for years, exacerbated by a suspension of flights to Europe and the UK since 2020, following the European Union Aviation Safety Agency’s decision to revoke the carrier’s authorization over concerns regarding pilot licensing irregularities.
In addition to the PIA restructuring, the cabinet’s decisions included the approval of the privatization of the First Woman Bank and a halt on wheat imports due to substantial domestic reserves.
Moreover, the deregulation of medicine prices, except for essential drugs, was sanctioned, alongside administrative measures affecting the judiciary and defense production.
The pharmaceutical industry welcomed the decision to deregulate medicine prices outside the essential list, anticipating positive outcomes such as improved access to quality medications and relief for patients facing shortages.
As Govt privatises loss-making PIA ahead of elections, the approval of Lt. General Tahir Hameed Shah as chairman and member of the Wah Ordinance Factories Board, among other administrative appointments, further underscores the scope of decisions made during this cabinet meeting.
