PM orders privatisation process to be put on fast track

• Nawaz asks Privatisation Commission to take firm but prudent steps to pick up pace of privatisation process
• Govt to withdraw all show-cause notices issued to PIA employees and union leaders if they rejoin work immediately

Buoyed by the end of the protest by the Pakistan International Airlines (PIA)’s employees, the federal government has decided to put the privatisation process on fast track as the protesting employees and union leaders were provided a ‘face saving option’ of a meeting with Punjab Chief Minister Mian Shahbaz Sharif, who interestingly has no role in PIA’s operations, Pakistan Today has learnt.

A source in the federal government told Pakistan Today that Prime Minister Nawaz Sharif had directed Privatisation Commission Chairman Mohammad Zubair to take firm but prudent steps to pick up the pace of the privatisation process.

“Separately, the government has also decided to withdraw the Pakistan Essential Services (Maintenance) Act 1952 and all show-cause notices issued to 78 employees and union leaders of PIA. The union leaders have been assured that no cases would be registered against the protesters or union leaders if they rejoin their duties immediately,” the source added.

“Everything is on track now. Normal course of action would be adopted from now on,” a senior official at the Prime Minister’s Office said.

The source added that with cracks emerging within the protesting employees of PIA and the involvement of political parties with the protesting workers, the federal government had decided to deal with the protesters ‘firmly’.

“The prime minister took a hard line vis-a-vis PIA protesters. He decided not to submit to blackmail of the unions. That is why the government did not yield to this protest, especially after it took on a political dimension,” the source added.

The official said that the PIA had already suffered a loss of around Rs 4 billion due to cancellation of almost 700 flights which put more pressure on the already ailing airline. He said that the issuance of show-cause notices proved effective as many officials returned to work.

The official said that the employees were afraid of stern action by the government therefore they re-joined the offices after the issuance of show-cause notices. This eventually took the steam out of the protests.

However, top union leaders remained defiant and wanted to continue with the strike.

THE PRIVATISATION PLAN:

The official said that the government plans to offer 26 per cent shares of the PIA to the private sector, also giving them management control and authority to take major decisions.

“We have learnt lessons from other public sector departments like Pakistan Telecommunications (PTCL), etc. We believe that the new investor would inject capital in the airline and increase its fleet size. If PIA fleet goes up to 100 carriers, there would be no reason to lay off any of the employees,” the official said. He said that golden handshake was also an option.

The official said that he believed that the Pakistan People’s Party (PPP) leaders used this protest to shift the media’s spotlight from the Karachi operation, including allegations leveled by Uzair Baloch.

“When the PML-N government assumed charge, there were only 18 operational planes the airline had, while the total fleet, including grounded planes, was 22. The prime minister approved a policy under which sustained financial assistance was provided to the airline and now the total fleet consists of 40 airplanes. We plan to add another ten planes in the fleet by year-end which will take the total to 50,” the source said.

He said that the PIA management also aimed to acquire ‘wide-body planes’ like Boeing 777 and A-310 which would enable transportation of around 500 passengers on each flight.

When asked, the official said that the government had held 10 rounds of dialogue with the protesting union between December 25 and January 31 without any breakthroughs.