Federal cabinet approves privatization of PIA

Islamabad: The Federal Caretaker Cabinet Wednesday approved the sale of the national airline Pakistan International Airlines (PIA) just a day before the election.

According to the Prime Minister House, the privatization of PIA will help attract investors.

The Federal Caretaker Cabinet Tuesday approved the privatization plan of PIA. Two days ago, the Election Commission of Pakistan (ECP) had directed the Federal Caretaker Cabinet to stay away from any final decision on PIA.

The statement issued by the Caretaker Prime Minister's Office did not say anything about the Election Commission's directive, however Prime Minister Anwaar-ul-Haq Kakar had earlier said that the issue of privatization of PIA (implementation of any project) will be handed over to the newly elected government.

Caretaker prime minister's statement can also predict what kind of challenges the government will face on the economic front after the general elections on February 8.

The Prime Minister's House statement told that under the approved plan, PIA will be split into two companies, TopCo and HoldCo.

PIA's core activities, engineering, ground handling, cargo, flight kitchen and training will be under TopCo while Precision Engineering Complex, PIA Investments Limited, other departments and assets will be under HoldCo.

Earlier in 2023, the government accepted the International Monetary Fund's (IMF) condition that all loss-making state-owned enterprises be privatized to get the $3 billion program.

As of June last year, PIA's liabilities were Rs785 billion while the deficit was Rs713 billion.

The Caretaker Federal Cabinet has also approved the privatization of First Women Bank in the light of the recommendations of the Ministry of Privatization.

It also approved the deregulation of medicines not included in the National List of Essential Medicines.

According to the proposals presented in this regard, the price of these drugs has been exempted from the implementation of the Drug Act, 1976 and necessary amendments will be made in the Drug Pricing Policy 2018.

Pakistan Medical and Dental Council will ensure that doctors do not prescribe vitamins, multivitamins, minerals and over-the-counter medicines.

The Caretaker Federal Cabinet also approved the appointment of Lt. Gen. Tahir Hameed Shah as a member and chairman of the Pakistan Ordinance Factories Board in the light of the recommendations of the Ministry of Defense Production. This appointment will be effective from 29th November 2023.

Conversion of four accountability courts of Peshawar into special courts based on the recommendations of the Ministry of Law and Justice and the proposal of the Chief Justice of Peshawar High Court (PHC) was also approved by the cabinet.