Govt to provide all possible support to crisis-hit PIA, says Kakar

Caretaker Prime Minister Anwaar-ul-Haq Kakar on Monday stated the government would provide all possible support to Pakistan International Airlines (PIA) until the privatisation of the State-Owned Enterprise (SOE) is completed.

The interim PM directed relevant authorities that the process of PIA’s privatisation be accelerated and completed as soon as possible, and he should be regularly informed about the progress.

The remarks came during a review meeting of PIA’s financial affairs, which was held under the chairmanship of Kakar, read a statement released by the Prime Minister’s Office (PMO).

As per the statement, during the meeting, progress on the privatisation of PIA was reviewed in detail. The meeting was also informed about the current financial situation of the national carrier.

While presiding over the meeting, Kakar said that by privatising the loss-making SOEs at the earliest, taxpayer money will be saved from being wasted.

The development comes after PIA ‘completely suspended’ its flight operations, as 77 flights were cancelled due to a halt in the supply of fuel by Pakistan State Oil (PSO), a PIA spokesperson on Sunday confirmed.

The spokesperson noted that 52 international and 29 domestic flights were scheduled on Sunday, of which only four flights departed.

It added that the PIA administration was in constant touch with PSO as payments could not be made due to bank closure on Sunday.

“The national carrier has paid over Rs220 million to the PSO for the weekend,” the spokesperson said, noting that the scheduled evening flights will operate as soon as today’s credit line is available while alternative connections are being provided to passengers on the affected flights.

PIA, once a shining star in the list of profitable SOEs, has been engulfed in a severe liquidity crisis for decades and lost market share over the years over poor service, inefficient management, and under-investment in its operations. Its crisis has become a bigger issue owing to its need for frequent bailouts, which many say the government – faced by its own fiscal constraints – does not afford.