Prime Minister Raja Pervez Ashraf said that the government will extend all possible assistance to the management of Pakistan International Airlines Corporation (PIAC) to ensure that it makes a turnaround and regains its status worthy of a national carrier.
The Prime Minister expressed the hope that the management of PIAC under its new leadership would bring about marked changes in the organisation in the shortest possible time, so that the people can feel the difference. He expressed these views while chairing a meeting to review the performance of PIAC here on Wednesday.
The Prime Minister appreciated the initiative of PIAC to carry Hujjaj from Iraq, Myanmar, Sri Lanka and Bangladesh, enabling them to perform Hajj. However, he observed that these operations should in no way create any cause of complaints for Hajjis travelling from Pakistan.
He said that the government and the people of Pakistan have a lot of expectations that the new leadership of PIAC will succeed in improving the performance and restore people's confidence by adopting best practices. The Chairman, Pakistan International Airlines Corporation, Air Chief Marshal Rao Qamar Suleman (Retd) during his presentation, briefed the Prime Minister on the salient features of the business plan worked out by the new management in line with directions and policy guidelines given by the President and the Prime Minister of Pakistan.
He briefed the Prime Minister about the current financial and operational problems faced by PIAC and said that fuel cost and cost of financing are eating away a substantial part of the annual revenue of Rs 117 billion. He proposed short-term, medium-term and long-term plans to resolve the problems being faced by PIAC and bring it out of its present difficulties.
The Chairman said that the business plan has been prepared with a view to rationalise expenditure on the one hand while endeavouring to optimise revenues on the other. The Chairman PIAC requested the Prime Minister to convert the federal loan of Rs 8 billion into equity and allow roll over of Rs 147 billion loans due to various banks. He also requested for an immediate assistance of 4.5 million dollars for acquiring aircraft on dry lease.
The Prime Minister instructed the Minister of Finance to provide 4.5 million dollars to PIAC after fulfilling necessary formalities on top priority .He also assured the management of PIAC that he will favourably consider conversion of Rs 8 billion loan by the Federal government into equity.
The Prime Minister directed the Ministry of Finance to work out a plan for rescheduling of loans of Rs 147 billion owed to different banks by PIAC, to ease their financial situation. The Prime Minister appreciated the business plan worked out by PIAC and observed "he sees a ray of hope in the business plan prepared by PIAC for its turnaround and improvement in its services in future". The meeting was attended by Syed Naveed Qamar, Minister for Defence, Dr Abdul Hafeez Sheikh, Minister for Finance, Nadeem-ul-Haq, Deputy Chairman Planning Commission, Secretaries, Cabinet, Defence, Finance and other senior government officials.-PR
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