British conglomerate to assist PIA privatization as airline’s financial woes persist

People stand in queue as they wait their turn to buy flight tickets outside Pakistan International Airlines (PIA) office in Islamabad on July 1, 2020. (AFP/File)
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Updated 10 November 2023
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British conglomerate to assist PIA privatization as airline’s financial woes persist

  • Privatization Commission approved the appointment of Ernst & Young as financial adviser to help with the process
  • Pakistan International Airlines has struggled to stay solvent and offer smooth service to people for several years

ISLAMABAD: The Privatization Commission announced on Friday it had endorsed the appointment of a British conglomerate to assist with the privatization of Pakistan International Airlines (PIA) which has been struggling to stay solvent and provide smooth service to people for several years.

The national flag carrier canceled hundreds of domestic and international flights in recent weeks due to the financial crunch that made it increasingly difficult for it to continue its operations following the Pakistan State Oil’s decision to suspend fuel supply due to unpaid dues.

“The Privatization Board meeting, chaired by the federal minister for privatization Fawad Hasan Fawad, has concluded,” said an official statement circulated in Islamabad. “It approved the appointment of the financial adviser for the privatization of the PIA Corporation. A consortium led by Ernst & Young was declared the successful bidder.”

The statement added the board also appreciated the transparency of the procedure involved in making the selection.

PIA has received frequent financial bailouts in the past.

However, the country’s current interim administration refused to rescue it in August without a workable strategy to turn it into a viable business entity.

Last month, the government finally approved Rs8 billion ($28.8 million) financial support for the airline, giving the airline management hope that its flight operations would gradually normalize after getting the financial boost.


Pakistan arrests two suspected human smugglers amid ongoing crackdown

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Pakistan arrests two suspected human smugglers amid ongoing crackdown

  • Islamabad has intensified crackdown on human trafficking after multiple boat tragedies involving Pakistani migrants in recent years
  • This week, crew members of humanitarian rescue ship Ocean Viking rescued several Pakistanis among 44 migrants off the coast of Libya

ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) has arrested two human smugglers from the eastern province of Punjab, the agency said on Sunday, as part of an ongoing nationwide crackdown to dismantle trafficking networks and curb illegal migration.

Islamabad has intensified its crackdown on human trafficking networks after multiple boat tragedies resulted in its citizens getting killed in recent years. This week, crew members of humanitarian rescue ship Ocean Viking rescued Pakistanis among 44 migrants off Libya’s coast.

The FIA said it had conducted raids in Punjab’s Okara and Mianwali districts and arrested two suspects involved in visa fraud and human smuggling, who had swindled a few individuals out of Rs1.15 million ($4,142) on pretext of sending them to Oman.

“The suspects had gone into hiding after receiving money from citizens,” the agency said in a statement. “An investigation has been launched after the arrest of the suspects.”

Several Pakistanis attempt the dangerous and illegal journey each year in a bid to escape surging inflation and opt for a better life as the cash-strapped country navigates a tricky path to economic recovery from a macroeconomic crisis.

In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank in international waters off the southwestern Greek town of Pylos, marking one of the deadliest boat disasters ever recorded in the Mediterranean Sea.

Other incidents have also seen Pakistani migrants perish in shipwrecks off Italy, Tunisia and Libya, highlighting the persistent risks faced by people attempting irregular sea crossings to Europe.

Pakistani authorities have repeatedly urged citizens not to undertake such perilous journeys, while international agencies warn that smugglers continue to exploit economic hardship and conflict to lure migrants onto unsafe boats.