The Minister for Aviation, Khawaja Saad Rafique, issued a stern warning on Friday, stating that Pakistan International Airlines (PIA), the country’s national flag carrier, could be confronted with catastrophic losses of Rs 259 billion by 2030 unless immediate corrective measures are taken.
To safeguard the airline’s future, the Minister proposed transferring its administrative control to the private sector and attracting Foreign Direct Investment (FDI).
Presenting “The Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023” in the Senate, Minister Saad Rafique emphasized the urgency of seeking external investment and allowing private sector management to rescue the beleaguered airline. PIA currently faces a staggering debt burden of Rs 742 billion, further exacerbating the need for swift and decisive action.
The proposal, however, faced significant opposition from Senators, resulting in the Senate Chairman referring the bill to the relevant standing committee for further scrutiny. Despite the challenges, the Minister remained steadfast in asserting that these corrective measures were vital to ensure PIA’s survival and prosperity.
The ongoing financial crisis that has befallen PIA can be partially attributed to the reckless statement made by former minister Ghulam Sarwar Khan, which led to the airline incurring losses amounting to Rs 71 billion in both the European Union and United Kingdom sectors. The adverse impact on PIA’s operations and reputation has been significant and necessitates immediate intervention to stabilize the airline’s financial health.
During the Senate proceedings, members of Pakistan Tehreek-e-Insaf (PTI) party raised concerns about quorum, briefly disrupting the session. After a fifteen-minute bell ringing to summon the required number of lawmakers, the House proceedings resumed.
The future of PIA remains uncertain as the bill now awaits review and deliberation in the standing committee. With the airline’s financial stability hanging in the balance, urgent decisions must be made to ensure its survival as the nation’s premier flag carrier.
It is evident that the aviation industry’s landscape demands innovative strategies and private sector collaboration to tackle the formidable challenges posed by debt and operational inefficiencies. The fate of PIA, an emblem of Pakistan’s global connectivity and pride, now rests on the decisions to be made in the coming weeks by lawmakers and policymakers alike.
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