Pakistan International Airlines (PIA) may suffer significant losses of Rs 259 billion by the year 2030 if immediate remedial steps, including the transfer of its administrative management to the private sector, are not undertaken, the aviation ministry’s Khawaja Saad Rafique warned on Friday.
He emphasized the importance of moving through with critical reforms as soon as possible, such as giving the private sector administrative responsibility.
His concerns were expressed during his statement on the Senate floor, when he also introduced “The Pakistan International Airlines Corporation (Conversion) (Amendment) Bill, 2023.” Given PIA’s substantial debt of Rs. 742 billion, the minister stressed the urgent need for foreign direct investment (FDI) and the transfer of administrative authority to private organizations to ensure the airline’s sustainability.
However, during the proceedings, many senators strongly opposed the proposal. In order to make PIA a viable organization, the Senate chairman recognized the importance of FDI and private sector involvement. They referred the matter to the relevant standing committee for more research.
A bell rang for fifteen minutes to make sure that everyone was present after PTI MPs raised concerns about the quorum during the discussion. The quorum was restored and the House began to discuss the future of PIA. In its main body, the bill suggests amending Section 3, which specifies that the corporation’s shareholders will continue to hold the same number of fully paid shares while retaining their present rights and advantages.
Additionally, the federal government may issue new shares or revoke existing ones by an official gazette notification as needed during the validity term. The standing committee, which will carefully examine the measure and its suggested revisions, will now decide the future of PIA.