Minister for Privatization, Daniyal Aziz, has said that privatization process of core business relating to management and flight operation of Pakistan International Airlines (PIA) will be completed in accordance with the law before April 15 and no asset or hotels of the PIA will be sold out. At a press conference, Daniyal Aziz said the government is committed to finalizing privatization process of core business of PIA in accordance with the PIA Act which had been passed by the Parliament on April 15, 2016.
Reading out the Pakistan International Airlines Corporation (Conversion) Act, 2016, the minister quoted validity period of the bill. He said the section (P) of the bill says, "validity period" means the period starting from the commencing date and ending on the second anniversary of the commencing date, or on such earlier date as may be notified by the federal government in the official gazette."
The minister said that the government would sell only core business related to air transport business of the national flag carrier, whereas all other properties would remain in the name of the government. As per law, he said, the government is also planning to establish another company under which all the fixed assets of PIA would be managed.
The minister for privatization said that privatization process of PIA has been restarted after a gap of two years. According to last accounting book of financial year 2014-15 and some new data collected by Privatization Commission, the accumulating losses of PIA reached Rs 345 billion. Aziz said the government has resolved to privatize all the state-owned companies that are costing billions of rupees in losses, adding that the economy is burdened by Rs 600 billion annually owing to loss-bearing companies that is why they are needed to be privatized.
He criticized political opponents of the ruling Pakistan Muslim League-Nawaz (PML-N) by saying that Pakistan Peoples Party (PPP) has double standard when it comes to privatization. He criticized the incentives being given to loss making state entities under Benazir Employees Stock Option Scheme (BESOS) by the PPP, which was cancelled by Sindh High Court in a recent verdict.
The privatization minister ensured that during the privatization process, all legal rights and monetary benefits of the employees of the airlines would be fully protected. Quoting the example of Pakistan Steel Mills, he said that the present government has released four month salaries to employees of the Mills in a single-go which is unprecedented. But the government will not sustain their salaries if mill is not run, he added. He added that the PSM losses have reached Rs 200 billion since its closure.
Every other airline of any other country is progressing and developing eventually like Etihad Emirate, etc, unlike PIA. Their service and technology is commendable. "Our national flag carrier has been in loss since long and that's why our government has kept it in privatization list," he added. Privatization process is encouraged in the world and countries have been structuring their entities whenever there is a need. "It will be our pride if PIA becomes successful and progressive," he said.
The minister further revealed that talks on $800 million outstanding dues with Etisalat are on advance stage and the issue is near to resolution. He further explained that all the properties of Pakistan Telecommunication Company Limited (PTCL) have already been transferred in the name of the PTCL. Evaluation of the non-transferable properties of PTCL has been completed and also shared with the management of PTCL, he added.
The minister said that the management of Etisalat accepted the evaluation of the non-transferable properties of PTCL and deduction would be made out of total outstanding against the UAE telecom company. The privatization is not a new or wondering thing as it will help improve economy as well as the financial conditions of the employees, as the government can't bear further burden, he said adding that continued deterioration in PIA and Pakistan Steel Mills affairs are affecting the country's economy and their privatization is essential to run the wheels of economy.
The minister said the privatization process would indeed be blessing in disguise for the country and its people as with this process, more investment would come to the country and business activities would further be increased which would ultimately increase employment opportunities especially for young people.
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