Government's Firm Commitment to Privatize Financially Troubled Entities

In a recent press conference held in Islamabad, Fawad Hasan Fawad, the Caretaker Minister for Privatization, along with Information Minister Murtaza Solangi, unveiled the government's ambitious plans to revitalize Pakistan's economy by privatizing struggling state-owned enterprises (SOEs). They emphasized transparency and public interest as the guiding principles behind this crucial economic reform.

Minister Fawad highlighted the government's commitment to transform Pakistan International Airlines (PIA) into a thriving regional aviation hub. He underlined the urgency of this endeavor and the positive impact it will have on the nation's aviation sector. Fawad Hasan Fawad also revealed that Pakistan Steel Mills (PSM) is on the brink of a significant decision, set to be presented before the federal cabinet.

Fawad Hasan Fawad reassured the public, saying, "A robust regulatory control regime will be in place to safeguard public interest throughout the [privatization] process." The government is committed to a responsible approach, prioritizing the welfare of the citizens.

Minister Fawad expressed regret over the past administrations' inability to tackle Pakistan's economic challenges. He highlighted that the privatization process dates back to 1994, with many cases still stuck in litigation. The caretaker government, however, remains steadfast in fulfilling its obligations to the nation.

Minister Fawad disclosed the staggering costs associated with maintaining ailing SOEs. He revealed that in 2020, these enterprises were responsible for a significant portion of the country's Gross Domestic Product (GDP) deficit. Fifteen major entities incurred massive losses, amounting to a staggering Rs 2 trillion. This significant drain on resources diverted funds away from critical projects like the Bhasha Dam.

PIA, with losses of Rs 713 billion and a debt of Rs 263 billion, was particularly concerning. The minister pointed out that banks extended Rs 13 billion under government guarantees, and the government itself contributed Rs 150 billion to keep the airline operational. With monthly losses of Rs 12.7 billion, privatization has become a pressing matter for PIA's revival.

Future of PIA:

Minister Fawad shared the Privatization Commission's proposal to appoint a single transaction adviser, aiming to expedite the resumption of PIA flight operations for European destinations. He also mentioned a forthcoming visit by a team of experts to assess flight safety and security standards. He praised Pakistani pilots, emphasizing their skills in navigating challenging terrains, and assured that engineers and support staff adhere to international standards.

The state of Pakistan International Airlines (PIA) was revealed, with a fleet of 34 aircraft, 15 of which are currently grounded. Cumulative losses amounting to $2 million underscore the pressing need for revitalization. The government's resolute commitment to privatization reflects its dedication to the country's economic progress and the well-being of its citizens.