ISLAMABAD:
The federal minister for privatization, Abdul Aleem Khan, has declared the revival of PIA flight operation within the European Union (EU) to be an especially welcome growth that can assist in promoting off the nationwide flag service at a greater worth.
“Individuals are actually assured that they’ll quickly be capable of journey to Europe on PIA flights. The resumption of PIA’s European flight operations is seen as a milestone for the airline’s privatization course of,” Khan stated in line with a press release issued by the Ministry of Privatization.
The minister expressed hope that after Europe, PIA will quickly be operational for flights to the UK and the US.
“This may additional improve the airline’s repute and marketability. Numerous obstacles to the privatization of PIA have been resolved, and pending issues are actually being addressed swiftly,” he stated.
Khan stated the Worldwide Financial Fund (IMF) has accepted two key points associated to PIA’s privatization. These embody the removing of the 18% gross sales tax on new plane purchases and the switch of all PIA’s liabilities to a holding firm.
He assured that PIA could be offered with none outdated liabilities or excellent dues, making the airline extra engaging to traders after these reforms.
“The privatization course of is progressing quickly, and excellent news concerning the switch of PIA to the non-public sector is predicted quickly,” he stated.
In October, the ultimate bidding course of for the privatisation of PIA attracted only one bid of Rs10 billion for its 60% stake. The federal government had pre-qualified six teams in June, however solely a real-estate growth firm, Blue World Metropolis, participated within the bidding course of, putting a bid that was under the government-set minimal worth of Rs85 billion.
Pakistan was trying to offload a 51-100% stake in debt-ridden PIA to boost funds and reform state-owned enterprises as envisaged underneath a $7 billion IMF programme.
The Privatisation Fee stated it had requested the bidder to match the minimal bid. Blue World Metropolis Chairman Saad Nazir, nonetheless, stood by its bid. “We want the federal government all one of the best if they do not wish to settle for our bid,” he stated throughout a ceremony.
The European Union Aviation Security Company (EASA) on November 30 issued its authorization for PIA.