Pakistan International Airlines to be privatized by Oct 1: official

The Pakistan International Airlines (PIA) — the national flag carrier — will be privatized by October 1, Secretary Privatization Commission Jawad Paul said on Monday.

He informed the Senate Standing Committee on Privatization that the airline's due diligence would be completed in September.

Two proposals for the airline's employees were being considered, he said, elaborating that they would either be laid off immediately or in phases over three years.

The government has previously said it would sell a stake between 51-100% as part of reforms mandated by the International Monetary Fund (IMF).

The international lender wants Pakistan to reduce liabilities and losses of state-run companies, losses from which have reached PKR 1000 billion.

The government has recently also planned to close down other units, including Utility Stores and National Fertilizer Corporation.

The national airline has racked up billions of rupees in losses — around $1.8 billion in the last five years — among other issues, including a fake pilot licenses scandal which resulted in a ban by the European Union's Aviation Safety Agency.