PIA privatization plan stalled by financial hurdles
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The plan to privatize Pakistan International Airlines (PIA) has been delayed once again due to unresolved issues regarding the transfer of liabilities and assets, sources said.
According to a 24NewsHD TV channel report, the Privatization Commission, which had initiated the process in September last year with the aim of completing it by January 2024, has not received any decision from the Ministry of Finance on the formation of a holding company that would take over PIA's debts worth Rs261 billion.
The ministry also did not issue a no-objection certificate for the transfer of Rs80 billion to the core company that was supposed to be privatized, sources added.
The caretaker prime minister has received several reports from the Privatization Commission, the Ministry of Finance and the Ministry of Aviation, but no action has been taken so far.
The fate of PIA's privatization now rests with the newly elected government, sources said.
Meanwhile, negotiations between the Ministry of Finance and the banks on the modalities of transferring 261 billion rupees have also failed to reach a conclusion.
The government's silence on the matter has caused huge losses to PIA, as thousands of flights have been affected and hundreds of thousands of passengers have faced inconvenience.
Reporter: Ashraf Khan