ISLAMABAD: The government is set to hold a final auction for the state-owned Pakistan International Airlines (PIA) in the first week of October, an official said on Saturday, adding all issues related to the privatization of the national air carrier, including outstanding commercial loans, would be resolved within a couple of weeks.
The government announced in June it had selected six companies qualified to bid for PIA out of a pool of eight after receiving expressions of interest. Pakistan plans to sell more than 51 percent of its stake in the loss-making airline as part of the economic reforms suggested by the International Monetary Fund (IMF) for a fresh $7 billion loan program.
However, the country’s central bank refused earlier this week to grant a waiver or exemption to prospective buyers regarding PIA’s commercial bank loans of Rs268 billion ($971.1 million) and other financial guarantees in dollar terms, a development viewed as a setback to the privatization bid.
“It has been mutually decided with the pre-qualified bidders to hold final auction for the PIA in first week of October,” Dr. Ahsan Ishaq, a privatization ministry spokesperson, told Arab News. “We have been in touch with the central bank to resolve the issue regarding all outstanding commercial loans of the national carrier before its final bid.”
According to the ministry, the pre-qualified bidders for PIA include Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol (Pvt) Consortium and YB Holdings Consortium.
The government initially planned to finalize the deal on the country’s Independence Day on August 14, but it was delayed following requests from bidders who were waiting for the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
Official data available with Arab News reveal there are 88 commercially operated state-owned enterprises in Pakistan, with their collective losses reaching Rs730.258 billion ($2.61 billion) in the fiscal year 2022 (FY22).
In its five-year privatization plan ending in 2029, the government has approved 24 state-owned enterprises for sale, including PIA.
“This issue of the loans will be resolved in a couple of weeks,” Ishaq said. “Even if this issue of the commercial loans is not resolved, the final bidder may adjust this amount in its offer.”
The top ten loss-making Pakistani entities, including PIA with Rs97.5 billion, the National Highways Authority at Rs168.5 billion and the Peshawar Electric Supply Company Limited with Rs102.2 billion, accounted for a cumulative loss of Rs650.197 billion ($2.33 billion) in FY22, according to official data.
In contrast, the remaining enterprises reported combined losses of Rs80 billion ($286 million) during the same fiscal year.
Dr. Ishaq informed PIA’s cumulative losses alone had surpassed Rs800 billion ($2.86 billion), with the total asset valuation of the airline standing at approximately Rs160 billion ($572 million).
He said the government had categorized the entities to be privatized into first, second and third phases over five years, including PIA, First Women Bank, House Building Finance Corporation and various power generation and distribution companies.
“The government is fully focused on privatizing all state-owned enterprises to eliminate billions of rupees in annual losses,” he added. “Privatization is a time-consuming and complex process, but we are pursuing it diligently.”
Pakistan to hold final auction for national air carrier in October — official
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Pakistan to hold final auction for national air carrier in October — official
- Government says all issues related to PIA privatization, including outstanding commercial loans, will be resolved
- The national air carrier is among 88 state-owned enterprises that made collective losses of $2.61 billion in FY22
Finance minister says matters relating Pakistan’s $7 billion IMF bailout to be finalized this month
- The statement came after the IMF said its executive board will meet on September 25 to discuss new loan to Pakistan
- PM Shehbaz Sharif said “friendly countries” had played a major role in helping Pakistan meet the IMF requirements
ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Thursday that matters relating to Pakistan’s fresh $7 billion International Monetary Fund (IMF) program will be finalized this month, hours after the lender said its executive board will meet on September 25 to discuss the bailout.
The IMF statement allayed fears of a prolonged delay in much-needed funds for Pakistan. The South Asian nation struck a staff level agreement with the global lender in June, but board approval for the 37-month program has been pending since then.
Pakistani Prime Minister Shehbaz Sharif said earlier on Thursday that “friendly countries” had played a major role in helping meet requirements placed before Islamabad by the IMF, which included arranging additional external financing and rolling over debt.
Islamabad has for years relied on China, Saudi Arabia and the United Arab Emirates for financial assistance to meet external financing requirements and avoid sovereign default, which it came close to last summer.
“All matters with the IMF have been settled amicably,” Finance Minister Aurangzeb said in a statement. “These matters will be finalized in the meeting of the IMF board this month.”
Pakistan’s last $3 billion IMF program helped avert a sovereign default last year, amid a decline in foreign exchange reserves to critical levels, currency devaluation and record inflation.
On Thursday, Pakistan’s sovereign dollar bonds rallied, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.
Pakistan has been struggling with boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958. The latest economic crisis has been the most prolonged and has seen the highest-ever levels of inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.
The conditions of the fresh IMF bailout have become tougher such as higher taxes on farm incomes and electricity prices. The bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country.
Pakistan’s Affan Salman, World Youth Scrabble champion, hopes for government support
- 16-year-old studied words for six hours a day, practiced with siblings to prepare for the tournament
- With Salman’s win, Pakistan has become the only country ever to win the world youth title five times
KARACHI: Pakistan’s Affan Salman, who brought home the World Youth Scrabble Championship (WYSC) 2024 trophy this month, said he hoped his win would motivate more kids to take the word game seriously and participate in global competitions, calling on the government to support the Pakistan Scrabble Association and provide funds for training and international travel.
The WYSC is organized by the World English-language Scrabble Players Association (WESPA) annually. The championship was first held in 2006, with the inaugural event taking place in Australia.
Salman,16, participated in the 19th edition of the WYSC held in Sri Lanka from September 6-8. This is the fifth time Pakistani players have claimed the championship title, which is a record.
“It was an unreal feeling and initially I couldn’t believe that I became the champion. But when everyone started congratulating me, I realized I have won,” Salman told Arab News in an interview this week.
Salman played 23 games out of 24 and was crowned the champion in the 19th round.
“In this tournament, I made a highest point-scoring word of 158 points and that word was almagest,” he said, spelling out the word for an influential treatise on astronomy written by the Greek astronomer and geographer Ptolemy in the second century AD.
Pakistan won two trophies, one for the championship title and the other for being the top-ranked team, with four of its players in the top ten. India’s Madhav Gopal Kamath, who stood fourth in the tournament, was one of the toughest opponents, Salman said.
“There were two tough opponents, the number one player of India, Madhav Gopal Kamath, and the number one player of Sri Lanka, Adheesha Dissanayake,” the Pakistani player said.
“I played with Adheesha three times [out of which] he beat me one time. He beat me at a very crucial time in the tournament, in the 23rd round and I could see the championship going away.”
“NO GOVERNMENT SUPPORT”
Born and raised in Karachi, Salman has three brothers and is currently in the 10th grade, with a special interest in Computer Sciences. His elder brother Ali Salman won the world youth scrabble title in 2022 while his younger brother was also competing with him in this year’s edition.
“My father introduced us to scrabble,” Salman said. “He told me to play it in my spare time. I didn’t know we would start playing on a professional level and start winning as well.”
He said his elder brother was his inspiration.
“He taught me everything when we got into the depth of this game. Throughout the tournament, he motivated me a lot.”
To prepare for competitions, Salman studied words six hours a day and also played practice games with his brothers.
“There are word lists as well as a specific software through which we study words. It schedules words every day. Until we learn those words, the software doesn’t spare us,” the champion explained.
In the future, Salman says he wants to pursue computer engineering at the college level. He also hopes to participate and win big at the World Scrabble Championship (WSC), played to determine the world champion in competitive English-language Scrabble.
But for that he said government support was key.
“The government should collaborate with the Pakistan Scrabble Association … they should provide funds. If they cannot provide funds, they can at least sponsor our trips, that would make it much easier for us” Salman said.
“More kids will get motivated and feel that there is scope in scrabble.”
Construction begins of Afghan section of Turkmenistan, Afghanistan, Pakistan and India pipeline
- The Afghanistan section was to have been completed in 2018, but construction was repeatedly postponed because of security concerns
- The ceremony to weld the first joint of the pipeline section was observed by Afghan prime minister and the Turkmenistan president
ASHGABAT: Top officials of Afghanistan and Turkmenistan on Wednesday witnessed the start of construction of the Afghanistan section of the pipeline that will supply Afghanistan, Pakistan and India with natural gas from Turkmenistan’s vast reserves.
The Afghanistan section was to have been completed in 2018, but construction was repeatedly postponed because of security concerns. Only the Turkmenistan section has been finished.
The Wednesday ceremony to weld the first joint of the 100-kilometer (62-mile) pipeline section from Turkmenistan to the Afghan city of Herat was observed by Afghan Prime Minister Hassan Akhund, Turkmenistan President Serdar Berdymukhamediv and his father and predecessor Gurbanguly.
The pipeline will eventually supply 33 billion cubic meters of gas a year.
Turkmenistan has the world’s fourth-largest gas reserves, which are the keystone of its economy. After losing its gas trade with Russia, Turkmenistan sought to diversify its customers and currently exports mainly to China.
Gurbanguly Bersymukhamedov, who holds the title of National Leader of the Turkmen People, said that the pipeline project and ancillary projects will add 12,000 jobs in Afghanistan and more than 1 billion US dollars per year in revenue, according to the government newspaper Neutral Turkmenistan.
US imposes sanctions on suppliers to Pakistan’s ballistic missile program
- State Department says a Chinese research institute worked with Pakistan to procure equipment for Shaheen-3, Ababeel systems
- The latest sanctions also targeted three China-based firms alongside Pakistan-based Innovative Equipment and a Chinese national
The US State Department on Thursday imposed sanctions on a Chinese research institute and several companies it said have been involved in supplying Pakistan’s ballistic missile program.
Washington similarly targeted three China-based companies with sanctions in October 2023 for supplying missile‐applicable items to Pakistan.
Department spokesperson Matthew Miller said in a statement that the Beijing Research Institute of Automation for Machine Building Industry had worked with Pakistan to procure equipment for testing rocket motors for the Shaheen-3 and Ababeel systems and potentially for larger systems.
The sanctions also targeted China-based firms Hubei Huachangda Intelligent Equipment Co, Universal Enterprise, and Xi’an Longde Technology Development Co, alongside Pakistan-based Innovative Equipment and a Chinese national, for knowingly transferring equipment under missile technology restrictions, Miller said.
“As today’s actions demonstrate, the United States will continue to act against proliferation and associated procurement activities of concern, wherever they occur,” Miller said.
The embassies of China and Pakistan in Washington did not immediately respond to requests for comment.
Maritime experts urge Pakistan to expand its blue economy to $100 billion
- Pakistan held an international maritime conference which was attended by the International Maritime Organization chief on Thursday
- PM Shehbaz Sharif told the IMO chief that his government prioritized blue economy as ‘central pillar’ of economic development strategy
ISLAMABAD: Maritime experts on Thursday urged the Pakistani government to expand its blue economy to $100 billion as the country hosted an international maritime exhibition in Islamabad.
The International Maritime Sustainability Exhibition and Conference (IMSEC) was attended by International Maritime Organization (IMO) Secretary-General Arsenio Antonio Dominguez Velasco and several other maritime experts.
This is the first-ever visit to Pakistan by the chief of the IMO, a specialized agency of the United Nations responsible for regulating shipping and ensuring maritime safety, environmental protection and security on international waters.
During the maritime conference, panelists suggested the Pakistani government to work on increasing its share in the global blue economy, which means sustainable use of ocean resources to benefit people, livelihoods and ocean ecosystem health.
“Blue economy is a responsibility in which we do a business in maritime domain which is safe and secure as far as the environment is concerned, its ecosystem is preserved as well as it is centered around the people that was the message which was given by the secretary general of IMO as well,” Vice Admiral (retired) Ahmed Saeed, president of Pakistan’s National Institute of Maritime Affairs, told Arab News.
“So, today’s conference was actually centered around giving the details of the potential of Pakistan’s maritime economy. It is around $100 billion so at the moment our contribution into our national economy is less than 1 percent whereas it should be close to 6-10 percent.”
Professor Dr. Sajid Mahmood Shahzad, vice chancellor of MinHajj University in Lahore, said Pakistan should focus on the country’s maritime potential to fix the country’s fragile economy.
“We are always talking of fragile economy of Pakistan, if you really would like to ask me, answer to all those fragile economy of Pakistan is blue economy. We need to put up a lot of efforts to achieve, to gain whatever we have out at sea,” he told Arab News.
“The potential we have that is enormous, but being a maritime nation how to accrue those benefits from the sea, we are ignorant. I think now the time has come we should focus on our blue economy,” he said.
Fisheries and maritime trade
In his meeting with the IMO chief, Prime Minister Shehbaz Sharif vowed to expand the country’s fisheries and maritime trade, and explore offshore resources, according to Sharif’s office.
Established in 1948, the IMO’s primary role is to develop and maintain a comprehensive regulatory framework for shipping, which includes standards for safety, pollution prevention and legal matters surrounding global maritime operations.
The prime minister “underlined Pakistan’s desire for expanding fisheries and maritime trade, exploring offshore resources, promoting coastal tourism, and fostering a sustainable shipbreaking industry,” Sharif’s office said, after his meeting with the IMO chief.
It said the premier prioritized blue economy as a “central pillar” of his economic development strategy and highlighted the role of Pakistan’s Special Investment Facilitation Council (SIFC), a civil-military body set up in June last year, in attracting investments and introducing modern technologies to advance fisheries and the shipbreaking sector.
“PM Sharif renewed Pakistan’s firm commitment to work with the international partners and the IMO to contribute to global efforts aimed at reducing maritime emissions,” the statement from Sharif’s office said.
“Secretary-General Velasco appreciated the prime minister’s leadership and Pakistan’s proactive approach toward leveraging its maritime resources for economic progress and its role in the global maritime community.”
He assured continued support to Pakistan from the IMO in furthering maritime collaboration for sustainable development.
Maritime decarbonization, environment-friendly ship-recycling
Earlier at the conference, the Pakistani government pledged to reduce greenhouse gas (GHG) emissions from the global maritime sector, make greater use of green technology to improve ships’ energy efficiency and carry out more environment-friendly ship recycling.
“Pakistan fully complies with IMO regulation,” Maritime Affairs Minister Qaiser Ahmed Sheikh said at the opening session of the conference. “We are striving to reduce the global [carbon] footprint and make greater use of green technology. Such measures must be taken in every institution to deal with climate change.”
The minister said Pakistan was invested in ensuring the protection of biodiversity and the oceans and would work to make ship recycling “safe and environmentally friendly.”
“We are ready to work with global organizations to promote ship-making, ship-recycling and the blue economy,” Sheikh added.
Addressing the conference, IMO chief Velasco said his visit to Pakistan would give him the opportunity to “come back in the future and assess and evaluate all the promises and the conversations and the challenges that we are going to put toward each other, from Pakistan government as well as from IMO in order to work better in the different aspects of shipping.”
He said he looked forward to working with Pakistan on decarbonization and ship recycling, where Pakistan is one of the leading nations in the world.
