November 13, 2023 (MLN): The government's aim is to complete the Pakistan International Airlines (PIA) privatization bidding process within six weeks, subject to legal requirements, Fawad Hasan Fawad, the Caretaker Federal Minister for Privatization, stated during a televised interview on Sunday.
However, the minister acknowledged the formidable challenge posed by PIA's monthly loss of around Rs13.7 billion.
He stated, "Although it is a very difficult call, I am confident that, if there are no legal issues, the privatization of PIA will be successful."
In the interview, Fawad Hasan Fawad revealed significant strides in the privatization process of PIA.
The minister stated that they had initiated an international search for an advisor, with eight renowned international companies showing interest.
The appointed advisor's responsibilities will encompass legally vetting and obtaining approvals for the privatization scheme from relevant forums.
In the initial phase, the advisor will assess the valuation of assets targeted for privatization, including air service agreements and landing rights.
He stated that AirSial and Fly Jinnah have already demonstrated preliminary interest, along with several regional airlines.
Addressing concerns about the fate of PIA employees post-privatization, Fawad Hasan Fawad assured that no one would suffer injustice.
The new owner would have the discretion to retain staff, and despite the extensive engineering team, 40-50% of the workforce is expected to be retained.
For those not retained, the government is contemplating a golden handshake scheme or a similar arrangement.
The privatization effort is currently in the legal review phase, with a ten-day cool-off period anticipated after the finalization of agreements, he added.
The minister remains optimistic about the success of this challenging endeavor, underscoring the government's commitment to a smooth and equitable privatization process for PIA.
Copyright Mettis Link News
Posted on:2023-11-13T12:44:05+05:00
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