Khawaja Saad Rafique, Pakistan’s aviation minister, issued a dire warning on Friday on the poor financial situation of PIA.
He emphasized that if immediate corrective action is not taken, the airline will suffer astronomical losses of up to Rs. 259 billion by 2030.
Minister Saad Rafique urgently called for crucial actions, such as the handover of administrative management to the private sector, to save the national carrier from its increasing indebtedness.
During his speech on the Senate floor, Minister Rafique raised his concerns and introduced “The Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023.”
He emphasized how crucial it is to have foreign direct investment (FDI) and private sector participation to maintain the long-term viability of PIA, which is now struggling under a colossal debt load of Rs. 742 billion.
Nevertheless, numerous senators firmly opposed the plan throughout the proceedings. The Senate chairman acknowledged the relevance of FDI and private sector involvement in turning PIA into a profitable organization and referred the subject to the pertinent standing committee for further investigation.
In the course of the discussions, PTI MPs expressed doubts about the quorum, which led to the ringing of a bell for fifteen minutes to ensure that everyone there was present. House proceedings were resumed to talk over PIA’s future after the quorum was restored.
The main part of the bill proposes a change to Section 3, which states that the shareholders of the corporation will continue to possess the same number of fully paid shares while maintaining their current rights and benefits.
The federal government may also issue new shares or cancel existing ones as needed during the validity term by publishing a formal gazette notification.
The standing committee, tasked with carefully reviewing the bill and its suggested revisions, will now decide the fate of Pakistan International Airlines.
The committee’s judgment will have a big impact on the airline’s future and will decide if privatization and foreign investment can help PIA regain its financial footing.
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