The federal cabinet on Wednesday approved the privatization of Pakistan International Airlines (PIA), whose total losses have soared to Rs. 750 billion, with a minister saying it will open up the country’s aviation sector for international investment.
In a joint press conference with Privatization Minister Fawad Hassan Fawad after the meeting, Information Minister Murtaza Solangi said the cabinet ratified decisions taken by the former government on Jan. 21 and Jan. 28 regarding privatization of state-owned enterprises (SOEs), including PIA. He said the cabinet had decided to hire the services of a financial advisory consortium for the sale of PIA.
Fawad explained that PIA’s sale was unavoidable as it was recording losses of Rs. 12.7 billion per month, which was unsustainable. “Presently, the PIA fleet has 37 aircraft, of which 15 are grounded. It means we are suffering such a huge loss only to fly 22 planes—and most of them have completed their flying life,” he said, while claiming that no employee of the airline would lose their jobs during the privatization process. He also clarified that privatization of SOEs would make them profitable and add value to their services for the people.
The cabinet meeting, chaired by interim Prime Minister Anwaarul Haq Kakar, also condemned Israel’s bombardment of Gaza, which has resulted in the deaths of innocent and unarmed Palestinians. Solangi said concern had also been expressed about the shortage of food and water in Gaza. He said the cabinet had unanimously emphasized that recent tensions were a result of Israel’s illegal occupation of Palestinian territories for the last two decades, oppression of innocent Palestinians and open violation of U.N. Security Council Resolutions.
He also reiterated Pakistan’s principled stance that a viable, sovereign, and contiguous State of Palestine should be established on the basis of pre-1967 borders, with Al Quds Al-Sharif as its capital in light of U.N. resolutions and will of the people of Palestine.
Additionally, the cabinet approved the appointments of former Lahore High Court judge Sohail Nasir as deputy chairman of the National Accountability Bureau and Syed Ehtesham Qadir Shah as its prosecutor general for accountability. On the recommendation of the Interior Ministry, it approved the extradition of two Pakistani citizens–Shahzad Ahmed to U.A.E. in a fraud case; and Arshad Ali to Kuwait.
It also decided, per Solangi, that no genuine and registered Afghan refugee would be repatriated, and the ongoing crackdown would only target those staying illegally in Pakistan. “The government will not act against those who have Afghan citizen cards verified by the previous Afghan government,” he said, adding that thousands of illegal residents had already started returning to their countries.
To a question, Solangi supported the Election Commission of Pakistan (ECP)’s decision to conduct general elections in January, dismissing concerns of some politicians that voter turnout would be impacted by the freezing weather. “The country’s electoral history suggests that polls were held in extreme cold and hot weather,” he said, adding the caretaker government would provide its full support to the elector body in the conduct of polls.