No decision made on PIA: PC official

The work relating to restructuring, special audit and strategic business plan in Pakistan International Airline (PIA) is delayed as its chief executive officer (CEO) has been barred from discharging his duties as CEO by a court of law. This was stated during a meeting of the National Assembly's Standing Committee on Privatisation on Wednesday.

Syed Mustafa Mahmud belonging to the Pakistan People's Party (PPP) chaired the meeting. An official of the Privatisation Commission (PC) informed the committee that no decision had been made on the PIA, and the Prime Minister's Task Force on PIA was given a mandate to devise a plan for the national flag carrier.

"A collective decision on the PIA is required under the terms of reference (ToRs) of the task force and not possible without the CEO PIA a member of the task force," he said.

The committee was further informed that the PIA's board in September 2019 approved hiring of an international consultant within six months for a comprehensive strategic business plan for the revival of the airlines, in line with the decision of Prime Minister's Advisor to Finance Dr Hafeez Sheikh.

An official of the Aviation Division, Tariq Bukshi informed the committee that PIA's board has been given a free hand to improve the performance of the entity.

However, a special audit of 10 years (2007-2018) could not be settled without the CEO. A loss making "The Roosevelt Hotel" located in New York owned by an independent subsidiary Pakistan International Airlines Investment Limited (PIAIL) of the Pakistan International Airlines Company Limited (PIACL) was on an active list of Privatisation Commission (PC), however, the data of the entity was not shared with the PC.

The process is likely be delayed due to 'restrictions' on CEO PIA. "Adhoc or interim business plans for the revival of the PIA were presented in the past but a comprehensive business plan is needed for finance," he said.

An official of the PC said that on November 15, 2019, a task force was constituted which has a mandate to examine and process all the formalities for an early disposal of the PIA properties. Headed by Minister for Privatisation Muhammad Miansoomro, the task force includes Special Assistant to Prime Minister on Overseas Pakistanis Zulfiqar Abbas Bukhari, Secretary Privatisation Commission and Additional Secretary Ministry of Finance as well as legal and financial consultants on the Roosevelt Hotel Corp and any other official deemed necessary to be co-opted by the task force.

Muhammad Miansoomro said that the Roosevelt Hotel was 100 years old and in near demolishable condition. Secretary Privatisation Rizwan Malik informed the committee that two RLNG power plants would be privatised by April 2020, however 747 MW Guddu Thermal Power Plant would be privatised in second quarter of financial year 2020-2021 because of rehiring of Finance Advisor for the privatisation of Guddu Thermal Power Plant.

The committee was further informed that the circular debt of two RLNG Power Plants reached almost Rs82 billion and the profit of Guddu Termal Power Plant was reduced to Rs 5 billion in 2018-2019, which stood at Rs 11 billion in 2017-2018. He further said the SME Bank would be privatized in current financial year and First Women Bank in next four months.