The government will privatise its national carrier by next July, a minister said Tuesday, following years of crushing losses and mismanagement that have battered the airline’s reputation.
“We are planning to privatise PIA in view of its heavy and recurring financial losses,” Privatisation Minister Mohammad Zubair told reporters. Once the government approves the sale, the Privatisation Commission will try to sell the struggling airline on the international market, he added.
Zubair said the government was considering the mode of privatisation but one option was to sell 26 per cent of the total shares along with management control. “We will hold road shows in the Middle East and China as well as in Europe to find a buyer,” he added.
The government over the weekend converted PIA’s state-owned status to a “commercial entity” through an ordinance, but stopped short of announcing its privatisation plans.
That move sparked a fierce backlash among many of PIA’s 15,000 employees, who rallied at major airports across the country Monday and Tuesday.
“This is our peaceful protest against the government plan,” said Shamim Akmal, a senior employee representative.
PIA’s cumulative losses were $2.2 billion as of last June.
The government had to inject Rs 12 billion to Rs 15 billion annually to keep the airline alive and pay employees.