The flag carrier in particular
Once again PIA comes close to an embarrassing (partial) shut-down because it could not meet its own date for even a tiny portion of its outstanding dues with PSO. Its receivables with the oil giant, it is reported, have risen to above Rs12.1 billion over the last couple of years. And its own promise of a Rs2 billion payment by end of business day Tuesday, just to keep the planes flying, was apparently not met. Chatter doing the rounds in newsrooms ahead of formal announcements indicates PSO will not follow through on its threat of not fueling PIA planes till the payment is made. The ministry of aviation intervened, apparently at the last minute, urging PSO officials to avoid actions that would shame the nation. It is also learnt that despite cutting losses, the airline is hemorrhaging approximately Rs20 billion annually. If such is the cash flow despite shedding weight, would it not be better to close the chapter on it and start a new national airline?
The ministry’s fire-fighting might have kept the national flag carrier from ‘going belly-up’ yet again, but unfortunately it does not seem much concerned about halting the PIA’s disgraceful and persistent decline. However it’s not clear what any recommendations from the ministry can achieve when there is little or no appetite for effective restructuring where it matters in Islamabad. Just like every party in every election campaign, the N-league made much talk about restructuring public sector enterprises. Yet those at the helm took little time remembering why they do not honour such promises as a rule. Politicisation of PSEs has been standard practice since the decade of democracy, and removing political appointees and inducting professionals requires the kind of political will that is in short supply in the capital these days.
It is little surprise, therefore, that railways continues to register losses despite tall claims by the concerned minister, Khwaja Saad Rafiq. He’s had a lot to say about politics and economy, especially the kind of politics that harms the economy, but there’s been little to impress with regard to his ministry. And the less said about the steel mills, the better, especially considering the way family silver has been allowed to go waste. Interestingly, what little advances were made on the privatisation front, too, were controversial and had to be forcefully rolled back. The government seems contradicting its own policies. Clearly the restructuring and privatisation policies were not well thought out – perhaps another one of those ‘electoral promises’ that suited the campaign. Now, after almost a year-and-a-half in office, the ruling party must turn its attention to the losses of PSE. Its position so far, especially regarding the carrier, has been cause for considerable concern.
Just handing over such enterprises to technocrats would resolve the whole issue but then Sharif's cronies would die of hunger.
PIA hameoragging started with appointment of cronies like Aijaz Haroon, Yusafzai and a thoroughly corrupt Chairman like Ahmed Mukhtar. Before them Mukhtar's elder brother Ahmed Saeed set the pace for airline to be reduced to an Organization whose executive corridor was dominated by high school graduates with pilot skills, sans any management or integrity. It was during his time that PIA had a GM IT who could not handle a laptop, and write a letter in English. What else could be expected than PIA ' destruction?
Financial and administrative discipline has to be enforced in PIA, otherwise it will continue to bleed and very soon meet fate of PSM. What PIA needs is an honest management composed of qualified professionals with powers to hire and fire all those who have been involved in gross financial irregularities, pilferage of revenues and controversial procurement and leasing of aircrafts. The airline revenue management and marketing needs to be restructured and all those involved with the nexus of few marketing executives and travel agencies, responsible for creating cartels and artificial shortage of tickets especially for Hajj and Umra pilgrims must be sacked. There should be no surplus staff, nor place for politically motivated foreign postings. Give PIA a man like RafiqueSaigol or Nur Khan, not the choice of Shujaat Azeem or Jaffar and within two years, the airline will turn around and become self sustaining.
Comments are closed.