The privatisation of 68 state-owned companies, among them loss-making enterprises such as PIA, is a crucial part of the 2013 IMF bailout and was meant to put the country''''s finances back on track. The government has made some progress, for instance by raising more than $1 billion from the stake of its entire stake in Habib Bank Ltd, but has struggled to find buyers for most of the companies in the face of opposition from labour unions and other political parties.
The PIA sell-off required amending a 1956 law that barred private ownership of the national airline. Instead of an amendment, the government on December 5 issued a presidential decree to turn the national flag carrier into a limited company. The move prompted bitter criticism from political opponents who accused the government of bypassing parliament by opting for a decree over an amendment that would require lawmakers to vote.
The ruling party then moved the PIA Corporation Conversion Bill 2015 in the lower house of parliament in January, where it passed. On Friday, however, the Senate rejected the bill, with votes from the opposition Pakistan People''''s Party, which has a majority in the upper house. The PPP opposes the privatisation of PIA and Pakistan Steel Mills, saying they can be restructured and revived, rather than sold off.
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