ISLAMABAD, Dec 19: The National Assembly was informed on Thursday that the government is getting enhanced bids for privatisation of Pakistan International Airlines (PIA) for its upcoming second attempt after a recent failed bid to sell the loss-making national flag carrier.

During the question hour in National Assembly, Federal Minister for Law and Justice Azam Nazeer Tarar expressed optimism regarding improved bids this time, highlighting that the restoration of the routes to Europe is a positive development.

The response from the minister came following a severe criticism from Naveed Qamar, Abdul Qadir Patel and Shazia Marri of Pakistan People’s Party (PPP) – a key ally of the ruling PML-N – regarding government’s failure to revamp or privatise PIA.

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The government, according to Tarar, is unable to foresee the results of the bidding process; however, there is optimism regarding the quality of bids expected this time.

“The privatisation process needs to be carefully planned. This time, we anticipate improved bids and a more favourable outcome […]lessons learnt from past mistakes have been corrected to make the next plan more successful,” he added.

He said that the last bidding was not flawed in any technical way but faced some problems and for that reason, services of top-notch firms have been acquired.

He said that Muhammad Amir Hayat, a pensioned air vice marshal of Pakistan Air Force, has resigned as chief executive officer (CEO) of PIA Holding Company Limited (PIAHCL), with his departure effective from December 9, 2024 and he has been sent back to his parent department.

The minister said that the government will remain in control of majority shares in PIA after privatisation and any new management will be given a framework to carry out its business with strict adherence.

An earlier bidding process was conducted, during which the Blue World Consortium submitted a bid of Rs10 billion, significantly lower than the minimum expected price of Rs85 billion. The Privatization Commission Board reviewed the highest bid from the Blue World Consortium but ultimately decided to reject it.

Tarar pointed out that globally, only a few countries maintain state-run airlines, signalling that privatisation might align better with international practices.

The house was informed that the National Electric Power Regulatory Authority (NEPRA) is currently engaged in legal proceedings concerning 71 cases of excessive billing involving several delinquent distribution companies (DISCOs).

In a written reply to a question, the house was told once the proceedings are concluded; NEPRA may impose fines on DISCOs in accordance with the relevant rules and regulations. Additionally, fines have already been imposed on DISCOs for various other violations.

The minister in-charge for Cabinet Division said that during July and August 2023, DISCOs issued inflated bills to consumers that exceeded the standard billing cycle of 30 or 31 days, impacting a total of 4,106,318 consumers.

Following the necessary investigation and NEPRA’s subsequent directions, consumers’ bills were revised using a pro-rata mechanism in cases where the billing period exceeded 30/31 days.

Later, during the period from April to June 2024, DISCOs applied the pro-rata mechanism for both cases where the meter reading was taken for more or less than 30/31 days.

As a result of the negative pro-rata application, the categories of 1,192,602 consumers were changed again.

Meanwhile, Shaza Fatima Khawaja, the state minister for information technology claimed that remittances from telecommunications, computer, and information services hit a record high of $3.223 billion in exports during fiscal year 2023-24.

She highlighted that Pakistan’s ICT sector saw a 24 per cent growth, adding US$ 627 million to the US$ 2.596 billion achieved in FY 2022-23.

She said that IT industry achieved a record trade surplus of US$2.827 billion in FY 2023-24, marking a 22.31 per cent increase from the previous year’s surplus of US$ 2.297 billion. Despite the services sector’s overall trade deficit, the ICT sector led the way, contributing 41.29 per cent of total service exports, with other business services following at $1.550 billion.

Copyright Business Recorder, 2024