News
Saturday, July 13, 2013
ECC starts discussing PIA privatisation* Committee decides to release Rs 7bn to PIA to help it make payments to vendors
By Sajid Chaudhry
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has been proposed to privatise 25% to 30% shares along with handing over of management control to a strategic investor of Pakistan International Airlines Corporation (PIAC), official sources said.
The ECC on Friday started deliberations on a business plan of PIAC, which includes the proposal to privatise PIAC to a strategic investor, sources added.
Finance Minister Ishaq Dar chaired the meeting of ECC, which decided to release Rs 7 billion to PIA to help it make payments to its vendors. It was also decided that a comprehensive briefing on PIA would be made to ECC during its next meeting.
The turnaround strategy proposed to ECC suggested that “only option” available with the government is to induct at least 10 fuel-efficient Boeing 737 and A320 series aircraft in the national carrier fleet to improve it earnings. The proposal called for acquiring these aircraft on dry lease.
The proposal also maintains that the existing 777 aircraft fleet be used for long destinations like United States and Canada as their use for shorter routes is a loss making venture.
“The strategy also includes a proposal of selling 25% to 30% shares along with handing over management control of PIAC to a strategic investor in order to ensure better governance in the corporation,” sources said. They added a comprehensive briefing was also given to the participants of the meeting about the current state of affairs of PIA.
The meeting was attended by Minister for Industries and Production Ghulam Murtaza Jatoi, Minister for Information, Broadcasting and National Heritage Senator Pervez Rashid, Minister for National Food Security and Research Sikandar Hayat Bosan, Minister for Petroleum and Natural Resources Shahid Khakan Abbasi, Minister for Planning and Development Ahsan Iqbal, Minister for Water and Power Khawaja Muhammad Asif, Minister for Science and Technology Zahid Hamid, the adviser to prime minister on aviation, secretaries of various divisions and heads of different departments.
Courtesy www.dailytimes.com.pk