ISLAMABAD- Just months before the current government’s term ends,Privatization Ministry has announced selling a minority stake in PIA.

The move will be completed by April 15th and will have the government sell49% of its share in the national airline.

Privatization Minister Daniyal Aziz broke the news, saying that PIA’s corefunctions will also be divided with the air transport business separatedfrom other areas of operation until April 15th. This will be the firstphase of PIA’s privatization.——————————

At the meeting of Senate Standing Committee on Privatisation, oppositionparties raised a point that the government is vying for privatization justa few months before election. After a lengthy discussion, PrivatizationMinistry said that a minority stake of 49% will be sold off in April, whilePIA’s management will stay under the government’s control.

The government will retain its hold on the airline’s management, while alsobeing a majority stakeholder.

PIA’s air transport business will stay under the government while otherassets and liabilities will fall under a new company, which hasn’t beennamed yet.——————————

Commenting about PIA’s recent string of losses he mentioned that they werefrom the national exchequer and not from PIA itself. The amount will beused for other welfare projects across Pakistan.

He added that the government has no choice but to initiate privatization,following the PIAC Conversion Act 2016.

Note that the privatization has been approved by the Senate Committee andnot the Prime Minister. The privatization process will commence after hisapproval.