Government says eight entities interested in Pakistan’s debt-ridden airlines amid privatization drive

View of a Pakistan International Airlines (PIA) passengers plane, taken through a glass panel, at the Allama Iqbal International Airpor in Lahore, Pakistan on January 29, 2024. (REUTERS/File)
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Updated 17 May 2024
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Government says eight entities interested in Pakistan’s debt-ridden airlines amid privatization drive

  • The deadline for submitting expressions of interest to participate in PIA’s divestment ended at 4 PM on Friday
  • The Privatization Commission is now carrying out the pre-qualification process in line with the laid-out criteria

KARACHI: The Ministry of Privatization on Friday named eight business entities that have expressed interest in acquiring stakes in the state-owned Pakistan International Airlines (PIA) that has faced significant financial difficulties and repeatedly urged the government for bailouts in recent years.

Pakistan agreed to overhaul its public sector entities under a $3 billion short-term loan package it signed with the International Monetary Fund (IMF) last year to avert a sovereign debt default.

The IMF recommended the government privatize the state-owned enterprises (SOEs) whose losses were burning a hole in the country’s finances amid its already precarious economic situation.

According to the ministry, the deadline for submitting expressions of interest to participate in PIA’s divestment process ended at 4 PM today.

“In response to the Invitation of Expression of Interest (EoI), for Divestment of Pakistan International Airlines Corporation Limited (PIACL), published advertisement in leading national and international newspapers on 2nd & 3rd April, 2024, Privatization Commission has received Statement of Qualifications from (1) Fly Jinnah, (2) Air Blue Limited, (3) Arif Habib Corporation Limited, (4) Sardar Ashraf D. Baluch – SHANXI CIG Co. Ltd. (China), (5) Gerry’s International (Private) Limited, (6) Consortium Lead by Y.B. Holdings (Private) Limited, (7) Consortium Lead by Pak Ethanol and (8) Consortium Lead by Blue World City,” it announced.

“Privatization Commission will now carry out the pre-qualification process in line with the criteria laid down in the RSOQs [Requests for Statement of Qualification], under the PC Ordinance 2000 and rules & regulations framed thereunder,” it continued. “Accordingly, the pre-qualified parties will be invited for the next stage of bidding process.”

The privatization of SOEs is proving to be a challenging process. Prime Minister Shehbaz Sharif stated earlier this week his government would not sell public entities it deemed “strategically important.”

Prior to this, the newly appointed Deputy Prime Minister Ishaq Dar, while chairing a meeting of the Cabinet Committee on Privatization, affirmed the government would continue to retain essential or strategic SOEs.

Contrasting these views, Finance Minister Muhammad Aurangzeb, who is negotiating with the IMF for a fresh loan, declared that there was “no such thing as a strategic” public entity, indicating his intent to keep the privatization process comprehensive.


Pakistan high court pauses tree-cutting in Islamabad until Feb. 2

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Pakistan high court pauses tree-cutting in Islamabad until Feb. 2

  • Islamabad High Court asks CDA to ‘explain and justify’ tree-cutting at next hearing
  • CDA officials say 29,000 trees were cut due to allergies, deny felling in green belts

ISLAMABAD: The Islamabad High Court has ordered an immediate halt to tree-cutting in the federal capital until Feb. 2, seeking justification from civic authorities over the legality of a large-scale felling drive that has seen thousands of trees removed in recent months.

The interim order, issued by a single-judge bench led by Justice Khadim Hussain Soomro, came during proceedings on a petition challenging the Capital Development Authority’s (CDA) tree-cutting operations in Islamabad’s Shakarparian area and H-8 sector.

At the outset of the hearing, the petitioner’s counsel argued that trees were being felled in violation of the Pakistan Environmental Protection Act 1997, the Islamabad Wildlife Ordinance 1979 and the city’s master plan.

“Respondents shall not cut trees till the next date of hearing,” Justice Soomro said in the court order released on Friday while referring to CDA officials.

“Respondents are directed to come fully prepared and to file paragraph-wise comments before the next date of hearing, along with a comprehensive report explaining the justification and legal basis for the cutting of trees,” he added.

According to the court order, the petitioner maintained that the CDA had not made any public disclosure regarding the legal basis for the operation and that the felling was causing environmental harm.

The petition sought access to the official record of tree-cutting activities and called for the penalization of CDA officials responsible for the act under relevant criminal and environmental laws.

It also urged the court to impose a moratorium on infrastructure projects in Islamabad, order large-scale replanting as compensation and constitute a judicial commission headed by a retired Supreme Court judge to probe the alleged violations.

CDA officials acknowledge around 29,000 paper mulberry trees have been cut in the capital in recent months, arguing that the species triggers seasonal allergies such as sneezing, itchy eyes and nasal congestion.

They also maintain that no trees have been removed from designated green belts and that the number of replacement trees planted exceeds those felled.

Designed in the 1960s by Greek architect Constantinos Doxiadis, Islamabad was conceived as a low-density city with green belts and protected natural zones at its core.

Critics, however, say the recent felling has extended beyond paper mulberry trees and question whether authorities are adhering to the city’s master plan and the legal protections governing forested and green areas.

The court has adjourned its hearing until Feb. 2, 2026.