According to the government’s announcement on Monday, Pakistan intends to privatize its loss-making national airline, Pakistan International Airlines, as well as attempt to outsource its airport operations as part of an IMF agreement.
The Cabinet Committee on Privatisation meeting, led by Finance Minister Ishaq Dar, decided to privatize. Following a change to the law by the Parliament, the committee “decided to include Pakistan International Airlines Co. Ltd in the list of active privatization projects of the ongoing privatization programme,” according to a statement from the finance ministry.
The committee also supported hiring a financial advisor in addition to the significant decision to privatize the national airline. Dealing with the transaction of the Roosevelt Hotel, a New York-based asset owned by PIA Investment Limited, will be the advisor’s task.
In July 2023, the International Monetary Fund (IMF) authorized a $3 billion rescue plan for Pakistan. The international financial organization agreed to provide an immediate $1.2 billion payment to aid the nation’s ailing economy.
A day before the International Monetary Fund approved the distribution of $3 billion in bailout money, Saudi Arabia provided Pakistan with $2 billion in financial assistance.