ISLAMABAD- Pakistan International Airlines (PIA) has resumed flight operations to Europe, marking a significant milestone in its operational and privatization efforts.
The development reflects the national carrier’s steady progress toward becoming a credible and investment-attractive organization.
Pakistan International Airlines Privatization
Federal Minister for Privatization Abdul Aleem Khan announced reforms aimed at resolving longstanding issues to facilitate PIA’s privatization. This includes abolishing a significant tax on new aircraft purchases and restructuring financial liabilities.
The resumption of PIA’s flight operations to Europe is seen as a pivotal step in restoring confidence in the national carrier.
Federal Minister Abdul Aleem Khan highlighted this as a precursor to further expansion, including potential services to the UK and the US.
Such expansions are anticipated to enhance the carrier’s credibility and global competitiveness.
The privatization process has been reinvigorated with critical reforms. Notably, the International Monetary Fund (IMF) has approved two major provisions aimed at easing the path for PIA’s potential buyers. These include:
- Abolishment of 18% sales tax on the acquisition of new aircraft, making fleet upgrades financially viable.
- Transfer of financial losses to a holding company, ensuring the airline is privatized without inherited liabilities.
These measures are designed to attract investors by presenting PIA as a streamlined, debt-free entity with growth potential.
Structural Reforms to Boost Investment
Further structural changes are underway to enhance PIA’s attractiveness to the private sector. Minister Aleem Khan emphasized that the elimination of old liabilities will ensure a smooth transition during privatization.
Key reforms include the separation of legacy liabilities through a holding company structure and the elimination of historical dues.
These measures create a clean slate for potential buyers, significantly improving the airline’s marketability and investment potential.
This reform is expected to significantly improve investor confidence and make the airline’s acquisition more lucrative.
Additionally, the minister assured that privatization matters are being expedited to ensure timely completion.
These efforts aim to position PIA as a modernized, efficient, and market-ready organization. The privatization drive aligns with broader national goals of economic revitalization and operational efficiency in public sector enterprises.
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