ISLAMABAD: Rejecting criticism over the privatisation of Pakistan International Airlines (PIA), Prime Minister’s Adviser on Privatisation Muhammad Ali on Tuesday said that the move does not undermine national pride but aims to restore the carrier’s lost strength and efficiency.
Addressing a joint press conference with Federal Information Minister Atta Tarar, Muhammad Ali said that claims circulating on social media suggesting that the airline was sold for less than the value of its aircraft were incorrect and misleading, adding that such assertions do not reflect the facts of the privatisation process.
He said that PIA once operated a fleet of around 50 aircraft, but currently only 17 to 19 planes are operational, while 12 aircraft are on lease.
The adviser also addressed the claims that the government would only get Rs10 billion from the PIA’s privatisation, stating that the government would get 7.5% in cash and 25% in equity’s value — amounting to Rs10 billion and 45 billion, respectively.
He said the government would receive a total of Rs55 billion from the bidding proceeds, while Rs125 billion would be reinvested in PIA.
“PIA privatisation has been successfully completed and the entire nation witnessed the transparent process.”
On the airline’s financial decline, the adviser said PIA’s performance deteriorated significantly after 2009. He revealed that the national carrier incurred losses of Rs500 billion over the past 10 years.
This is a developing story and is being updated with further details.
