Govt decides to privatise loss-making PIA

Islamabad: The Cabinet Committee on Privatization (CCoP) approved the privatization of Pakistan International Airlines (PIA) on Monday.

Finance Minister Senator Ishaq Dar presided over a meeting of the Cabinet Committee on Privatization (CCoP), where the decision was taken.

The proposal from the Privatization Commission to include Pakistan International Airlines Co. Ltd (PIACL) in the privatization program was discussed during the meeting.

Following a change in the law by the Parliament, the CCoP agreed to add Pakistan International Airlines Co. Ltd (PIA) to the list of active privatization projects of the current privatization program.

A summary of in-depth updates about the privatization of the Roosevelt Hotel was delivered by the Privatization Division.

Furthermore, after discussion, the CCoP approved the engagement of a financial adviser by the Privatization Commission to handle/structure transactions involving the Roosevelt Hotel in New York, an asset of PIA Investment Limited (PIA-IL).

Earlier, the Federal Board of Revenue (FBR) has frozen Pakistan International Airlines’ (PIA) bank accounts over non-payment of taxes.

Pakistan International Airlines (PIA) is grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts.

The Federal Investigation Bureau (FBR) froze the national flag carrier's bank accounts, making it impossible for the national airline to make the necessary payments.

The huge sum of more than Rs 24 billion owed to Pakistan State Oil (PSO) is one of the significant unpaid balances that has become an urgent cause of worry.

A meager Rs 156 million was paid by PIA to PSO as its final payment on July 25. Although it arrived many days beyond the due date, this payment itself had some delays.

The Chief Financial Officer of PIA has promised to make the payment today in an effort to address the problem and reassure PSO of its commitment to meeting obligations.