ISLAMABAD: Pakistan’s caretaker administration announced on Tuesday it had determined “clear timelines” to carry out the restructuring of the cash-strapped national air carrier, which has been accumulating losses for a prolonged period of time.
The government held a high-level meeting this month to review Pakistan International Airlines’ (PIA) financial situation after it sought Rs23 billion ($76 million) in support of operational expenses.
The Pakistani authorities have sanctioned such bailouts in the past, though the airline has continued to rack up billions in arrears and losses over the years.
Prime Minister Anwaar-ul-Haq Kakar refused to provide cash assistance to the state-owned entity amid an ongoing economic downturn in the country, instructing relevant officials to prepare a restructuring plan to improve PIA’s financial situation.
“Federal Minister for Privatization Fawad Hasan Fawad chaired a meeting with different stakeholders regarding [the] restructuring of PIA leading to a Privatization process,” Pakistan Television reported on Tuesday. “Adviser to PM on Aviation along with key members of his team, senior management and legal/financial consultants of PIA were also present.”
“Clear timelines regarding the process were agreed with a view to meet the target set by the Prime Minister and the Cabinet,” it added.
Pakistan’s Economic Coordination Committee (ECC) asked the finance division and the State Bank of Pakistan to assist the PIA management earlier this month, but only after its restructuring plan was finalized and approved.
Last week, the national air carrier denied rumors of its closure due to its ongoing financial situation.
Prior to that, its management confirmed it had grounded 14 out of 31 aircraft to deal with the cash crunch.