Bids for PIA privatization invited again

Islamabad: Federal Minister for Privatization Abdul Aleem Khan said that bids will be invited again for the privatization of the Pakistan International Airlines (PIA).

The meeting of the Senate Standing Committee on Privatization was held under the chairmanship of Senator Talal Chaudhry in which Federal Minister Abdul Aleem Khan briefed on the privatization of PIA.

The meeting discussed the reasons for the lack of interest of buyers for the privatization of PIA and the bids received many times lower than the benchmark.

While briefing the Senate committee, Aleem Khan said: “When I became the minister, the privatization process of PIA had started. PIA had a total loss of Rs830 billion and there was a loss of Rs45 billion at the time of privatization”.

The federal minister stated that when they invited bids for PIA, interested parties came. Once the privatization process starts, it cannot be changed. Now they would invite bids again for the privatization of PIA and the process is underway for it. Prime Minister Shehbaz Sharif is focused on the re-privatization of PIA.

Aleem Khan added that the privatization of Air India had also failed five times, after which it was privatized. If PIA has to be sold, the government will have to have courage. PIA has the full potential to become a profitable institution. ‘I still say today that PIA can become a profitable institution and has very profitable routes’.

The Federal Minister for Privatization further said that he had asked the Federal Bureau of Revenue (FBR) to remove General Sales Tax (GST) on the purchase of new aircraft. GST is not levied on aircraft like this all over the world, but the FBR is within its axis which does not understand the matter.

He also stated that the government should clear all institutions of losses before privatization. The decision to privatize PIA should be taken immediately, the assistance of other ministries is needed in this regard.

The Secretary of the Privatization Commission told the meeting that the investors had asked to waive taxes of Rs26 billion and take responsibility for financing payments of Rs10 billion.