IMF agreed for cleaning of PIACL’s Rs45 billion negative equity, NA panel told

The National Assembly’s (NA) Standing Committee on Privatisation was informed on Thursday that the International Monitory Fund (IMF) had agreed for cleaning of Rs45 billion negative equity of the Pakistan International Airlines Company Limited (PIACL).

The Washington-based lender also gave its nod for the removal of 18% goods and services tax (GST) on aircrafts, according to an official release from the NA on Thursday.

The committee was further informed that it had been decided to capitalise on positive momentum generated by the IMF’s consent on critical asks, opening up of European routes, and to avoid further loss to national exchequer.

“It was decided to go for fresh Expression of Interest (EOI) at the earliest,” the statement read.

The 5th meeting of the Standing Committee on Privatisation was held under the Chairmanship of Muhammad Farooq Sattar, MNA, at Parliament House, Islamabad.

Govt receives one bid for stake in flag carrier PIA: report

As per the details, the committee discussed ‘The Privatisation Commission (Amendment) Bill, 2024’ and decided to defer the same.

Meanwhile, the committee appointed a sub-committee under the convenership Sehar Kamran, MNA to look into the reasons of decline of the PIACL.

The sub-committee, comprised of Khawaja Sheraz Mehmood, Saba Sadiq, Asia Naz Tanoli, MNAs, would submit its report to the Standing Committee within 30 days, as per the release.

Last month, Pakistan International Airlines (PIA) added a long-grounded ATR aircraft to its operational fleet, which is expected to help strengthen PIA’s flights to destinations such as Gilgit, Sukkur, Turbat, and Gwadar.

The development had come less than a week after the national airline added 11th Airbus 320, AP-BOM to its operational fleet with new engines, aiming to bring improvements to the national airline’s network and product quality.

PIA has also recently introduced an in-flight internet system on domestic flights.

PIA in a statement last month said it would resume flights to Europe in January, starting with Paris, after the EU aviation regulator lifted a ban on the national flag carrier.

PIA’s authorisation to operate in the EU was suspended in June 2020 over concerns about the ability of Pakistani authorities and its Civil Aviation Authority to ensure compliance with international aviation standards.

“We have got approval for the first flight’s schedule we had filed,” PIA spokesperson said then, adding that the airline would be opening bookings on December 9 for its planned January 10 flight of a Boeing 777 to Paris.

As per an estimate, the ban cost the loss-making airline Rs40 billion ($144 million) annually in revenue.

Resumption of flights to Europe is also expected to help the Privatisation Commission make its PIA privatisation case stronger, which fell flat when it received only a single offer, well below its asking price.

In October, Blue World City consortium, the only entity to bid, refused to match the minimum expectation of the Privatisation Commission of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in PIA, ending the bidding process of the national flag carrier’s privatisation.

The government plans to initiate another process of PIA privatisation.

“The process for the privatisation of PIACL will be started afresh with the hiring of a new Financial Advisor,” an official at the Ministry of Privatisation Commission told Business Recorder last month.