Union protests against PIA privatisation

KARACHI: The People’s Unity faction of the Pakistan International Airlines (PIA) Employees’ CBA Union has declared its intention to stage a protest today at Karachi’s Jinnah International Airport. Their demonstration is directed against the privatization and division of the national carrier.

Hidayatullah Khan, President of the PIA CBA Union, conveyed that their objection to privatization and division would be voiced through this protest.

He firmly asserted their resolute stance against the privatization of the national airline under any circumstances.

The approval for the privatization of the Pakistan International Airlines (PIA) was granted by the Cabinet Committee on Privatisation (CCoP) on Monday. The decision materialized during a convened session of the Cabinet Committee on Privatization (CCoP), presided over by Finance Minister Senator Ishaq Dar.

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During the meeting, the proposal presented by the Privatisation Commission concerning the incorporation of Pakistan International Airlines Co. Ltd (PIACL) into the privatization agenda was thoroughly discussed. After careful deliberation, the CCoP determined that Pakistan International Airlines Co. Ltd (PIA) would be included among the active projects earmarked for privatization within the ongoing privatization initiative. This decision was reached following a legislative amendment enacted by the Parliament.

A comprehensive update on the progress of the Roosevelt Hotel’s privatization was presented by the Privatisation Division. After comprehensive discussions, the CCoP granted its endorsement to the Privatisation Commission to engage a Financial Adviser tasked with facilitating and structuring transactions related to the Roosevelt Hotel located in New York. This hotel is an asset of PIA Investment Limited (PIA-IL).

Earlier, former Aviation Minister Khawaja Saad Rafique cautioned that Pakistan International Airlines (PIA) could potentially incur substantial losses of Rs 259 billion by the year 2030 if immediate corrective actions are not implemented. Among these measures, the transfer of administrative control to the private sector was highlighted.

Saad Rafique emphasized the critical requirement for Foreign Direct Investment (FDI) and the relinquishment of administrative control to the private sector in order to ensure the viability of PIA. He underscored that the airline is grappling with an imposing debt load of Rs 742 billion.