ISLAMABAD – Minister for Privatization, Daniyal Aziz Monday said thegovernment was committed to finalize privatization process of core businessof Pakistan International Airlines (PIA) before April 15.
Addressing a press conference here, the minister made it clear that thegovernment will sell only core business relating to management and flightoperation of the national flag carrier, whereas all other properties wouldremain in custody of the government.
The government was also planning to establish another company under whichall the fixed assets of PIA would be managed, he said.
Daniyal ensured that during privatization process, all legal rights andmonetary benefits of the employees of the airlines would be fully protected.
Daniyal Aziz said according to PIA Amendment Bill (2016) that was adoptedunanimously by the Parliament, the government was bound to complete theprocess by April, 15 this year.
He said PIA had been in loss for decades and a huge burden on the nationalkitty, therefore agenda of divesting the national airlines had always beenon top of the list of every government.
Regarding total losses of the airlines, the minister informed that up toMarch 2017 total losses were recorded at Rs325 billion.
He said he would closely monitor the whole process and would ensuredcomplete transparency in the privatization process in the larger interestof the country.
He said the privatization process would be highly beneficial for thecountry and the people as it would not only help overcoming huge losses tothe national kitty but the people would enjoy more competitive flights withstate-of-the-art international facilities.
Due to loss making State-Owned Entities (SOEs), the country was facing ahuge loss of over Rs600 billion annually for last three decades, he saidadding, had this amount spent on the development sectors at gross rootlevel, the country would be competing the developed countries likeSingapore.
“We are planning to make Pakistan an Asian Tiger, however in the presenceof such bleeding SOEs, the country’s economic growth can not be sustainedfor long time and its huge chunk of resource would be utilized to coverlosses of such entities,” he remarked.
Daniyal Aziz informed that privatization of Pakistan Steel Mills (PSM) wasalso intact as its operation was closed for last three and half years andthe government had to pay billions of rupees in term of salaries andpensions.He said after taking over the charge of the ministry, he helped releasingfour months of salaries to the PSM employees besides he was also working toclear dues of the retired employees.
However, he said this process could not be run for long time and at onestage the mills would have to be resolved.
He said due to closure of PSM, the government was also facing huge loss ofimport bill as a massive quantity of steel was being imported to completeprojects under China Pakistan Economic Corridor (CPEC).
The minister said the privatization process would indeed be blessing indisguise for the country and its people as with this process, moreinvestment would come to the country and business activities would furtherbe increased which would ultimately increase employment opportunitiesespecially for young people.
Replying to a query, he said there were numerous success stories ofprivatizing the SOEs, such as Pakistan Telecommunication Corporation (PTCL)which had helped bringing revolution in the country’s telecom sector.
He said with the divestment of PTCL, not only its standard had improved butalso it helped to create a healthy atmosphere of competition which helpedprovision of quality services at affordable price.To another question regarding payment of dues of US$ 850 million to thefederal government by Etisalat, the minister hoped that the issue would beresolved soon as Etisalat had agreed for valuation of non-transferableproperties of PTCL.