Pakistan moves closer to PIA privatization with inaugural holding company meeting

Members of ground staff stand on the tarmac beside a Pakistan International Airlines (PIA) aircraft at the airport in Kabul, Afghanistan on September 13, 2021. (AFP/File)
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Updated 27 March 2024
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Pakistan moves closer to PIA privatization with inaugural holding company meeting

  • PIA Holding Company was formed to expedite the airline’s privatization by managing its liabilities and assisting with its transfer
  • The company’s board deliberated on strategic facets of the business to lay down groundwork for its efficient functioning

KARACHI: The government took yet another step toward the privatization of Pakistan International Airlines (PIA), as the newly established PIA Holding Company convened its first board meeting in Islamabad on Wednesday, initiating its operations.

The entity was formed following the approval of PIA’s restructuring plan last July by its board of directors, with an aim to expedite the national carrier’s privatization by managing the airline’s liabilities and assisting in its transfer to potential investors.

PIA’s privatization also aligns with the government’s commitment to structural economic reforms under the International Monetary Fund’s financial assistance programs.

“The board in its first meeting held on March 27, 2024, endorsed the Scheme of Arrangement delineating the pathway for the privatization of Pakistan International Airlines,” said an official statement circulated after the holding company’s inaugural board meeting. “This comprehensive scheme, already receiving the stamp of approval from both the Federal Cabinet and the [Pakistan International Airlines Corporation Limited] PIACL Board, sets the stage for the next chapter of the national carrier.”

“Additionally,” it continued, “the board meticulously deliberated on various strategic facets of the business, thereby laying down the groundwork for the efficient functioning of the holding company.”

Only a day earlier, the federal cabinet approved the board of PIA Holding Company, with former central bank governor, Tariq Bajwa, appointed as its chairman.

PIA has faced multiple financial challenges over the years, seeking financial bailouts from successive government.

With a struggling national economy, Pakistan has started working toward its privatization.

The decision is also expected to improve the service provided by the airlines to its customers.
 


Pakistani, Bangladeshi officials discuss trade, investment and aviation as ties thaw

Updated 53 min 45 sec ago
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Pakistani, Bangladeshi officials discuss trade, investment and aviation as ties thaw

  • Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war
  • Ties between Pakistan, Bangladesh have warmed up since last year and both nations have resumed sea trade

ISLAMABAD: Pakistan's High Commissioner to Bangladesh Imran Haider on Sunday met Chief Adviser Muhammad Yunus in Dhaka, the latter's office said on, with the two figures discussing trade, investment and aviation.

Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.

Ties between Pakistan and Bangladesh have warmed up since former prime minister Sheikh Hasina’s ouster as a result of a student-led uprising in August 2024. Relations remain frosty between Dhaka and New Delhi over India’s decision to grant asylum to Hasina.

Pakistan has attempted to forge closer ties with Bangladesh in recent months and both South Asian nations last year began sea trade, followed by efforts to expand government-to-government commerce.

"During the meeting, both sides discussed ways to expand cooperation in trade, investment, and aviation as well as scaling up cultural, educational and medical exchanges to further strengthen bilateral relations between the two South Asian nations," Yunus's office said in a statement on X.

In 2023-24 Pakistan exported goods worth $661 million to Bangladesh, while its imports were only $57 million, according to the Trade Development Authority of Pakistan. In Aug. this year, the Pakistani and Bangladeshi commerce ministries signed a memorandum of understanding to establish a Joint Working Group on Trade, aiming to raise their bilateral trade volume to $1 billion in the financial year that began in July.

The Pakistani high commissioner noted that bilateral trade has recorded a 20 percent growth compared to last year, with business communities from both countries actively exploring new investment opportunities, according to the statement.

He highlighted a significant increase in cultural exchanges, adding that Bangladeshi students have shown strong interest in higher education opportunities in Pakistan, particularly in medical sciences, nanotechnology, and artificial intelligence. Haider also said that Dhaka-Karachi direct flights are expected to start in January.

"Chief Adviser Professor Muhammad Yunus welcomed the growing interactions between the two countries and emphasized the importance of increased visits as well as cultural, educational and people-to-people exchanges among SAARC (South Asian Association for Regional Cooperation) member states," the statement read.

"Professor Yunus also underscored the need to further boost Bangladesh–Pakistan trade and expressed hope that during Mr. Haider’s tenure, both countries would explore new avenues for investment and joint venture businesses."