PIA’s Financial Outlook
PIA’s Financial Outlook-On Friday, Khawaja Saad Rafique, the Aviation Minister, cautioned about Pakistan International Airlines (PIA) facing a bleak financial future. He cautioned that if swift adjustments aren’t made, the airline might experience massive losses amounting to Rs. 259 billion by 2030. Minister Rafique emphasized the pressing need to execute crucial actions, which encompass the transfer of administrative authority to the private sector.
Expressed worries were articulated throughout his speech in the Senate chamber, during which he introduced the “2023 Amendment to the Pakistan International Airlines Corporation (Conversion) Bill.”
The official highlighted the crucial requirement for FDI and transferring operational authority to non-governmental bodies to secure PIA’s continuity, as the airline deals with a substantial debt of Rs. 742 billion.
Nevertheless, opposition to the plan encountered significant resistance from legislators throughout the process. As a result, the chairman of the senate referred the issue to the appropriate standing committee for additional assessment. This action acknowledged the significance of foreign direct investment (FDI) and involvement of the private sector in the transformation of PIA into a profitable entity.
While discussing the matter, members of the PTI party expressed worries about the minimum attendance required for a valid session. This concern led to a bell ringing for fifteen minutes to fulfill the attendance prerequisite. After the required attendance was achieved, the proceedings of the assembly recommenced.
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The legislation suggests a change in Section 3, indicating that the shareholders of the corporation would be considered owners of the same quantity of fully paid shares, while retaining their existing rights and privileges. Furthermore, the national government might, through an official gazette notification, introduce new shares or revoke existing ones as necessary during the valid period.
The destiny of PIA is now in the hands of the standing committee, which will meticulously examine the legislation and its suggested modifications.