Punjab mulling over acquiring national airline, says Pakistan ruling party chief 

Pakistan International Airline (PIA) planes are positioned on the tarmac at the Benazir Bhutto International Airport in Islamabad on October 10, 2012. (AFP/File)
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Updated 03 November 2024
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Punjab mulling over acquiring national airline, says Pakistan ruling party chief 

  • Nawaz Sharif says Punjab CM Maryam Nawaz consulted him on acquiring PIA, renaming it “Air Punjab”
  • Pakistan this week kicked off national flag carrier’s privatization process, receiving single highest bid of $36 million

ISLAMABAD: Punjab Chief Minister Maryam Nawaz proposed acquiring the country’s national flag carrier and renaming it as “Air Punjab,” her father and ruling party chief Nawaz Sharif said this week, days after Islamabad started the bidding process for the state-owned asset. 

Pakistan’s government kickstarted the privatization process of the loss-making Pakistan International Airlines (PIA) flag carrier on Thursday, holding a televised auction in which it received the sole bid of Rs10 billion ($36 million) from Blue World City, a real estate development firm. 

The bid fell far short of the minimum price of Rs85 billion ($305 million) set by the government, following which Pakistan’s Khyber Pakhtunkhwa (KP) province formally offered to exceed the bid on Friday, saying that the PIA should remain under government control to preserve its status. 

“Maryam said to me during consultations, “Shouldn’t we acquire the PIA and establish a brand new airline? Bring in brand new planes and that we should give a new airline to Pakistan,” Sharif said to members of his party in New York during a meeting. 

“She told me to name it as ‘Air Punjab.’“

The former prime minister said he told the Punjab chief minister to weigh the option of buying the PIA or the possibility of the Punjab government establishing a new one altogether. 

“We could introduce a new airline that would offer direct flights from Karachi, Lahore, Pesha­war, and Quetta to New York, along with services to London, Tokyo, Hong Kong, and other international destinations,” Sharif said. 

He said the Punjab government was holding consultations on the matter. 

Pakistan decided to move ahead with PIA’s privatization under terms agreed with the International Monetary Fund (IMF) for a 37-month, $7 billion bailout approved in September, aiming to divest over 51 percent of its stake in the financially struggling national carrier.

Critics, including PIA union representatives and independent analysts, called the low bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.


Pakistan FM discusses regional situation with Saudi counterpart, urges restraint and dialogue

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Pakistan FM discusses regional situation with Saudi counterpart, urges restraint and dialogue

  • This is the second time the two foreign ministers have spoken since the Arab Coalition targeted weapon shipments on Yemen’s Mukalla port
  • Saudi Arabia’s foreign ministry has invited factions in south Yemen to hold a dialogue in Riyadh to ‘discuss just solutions to southern cause’

ISLAMABAD: Pakistan’s foreign minister, Ishaq Dar, discussed the regional situation with his Saudi counterpart, Prince Faisal bin Farhan, and called for restraint and dialogue to resolve issues, the Pakistani foreign office said late Friday, amid tensions prevailing over Yemen.

This is the second time the two foreign ministers have spoken this week since the Saudi Arabia-led Coalition to Support Legitimacy in Yemen carried out a “limited” airstrike on Dec. 30, targeting two shipments of smuggled weapons and military equipment sent from the Emirati port of Fujairah to Mukalla in southern Yemen.

A coalition forces spokesperson said the weapons were meant to support the Southern Transitional Council (STC) forces, backed by the United Arab Emirates (UAE), in Yemen’s Hadramaut and Al-Mahra “with the aim of fueling the conflict.” The UAE has since announced withdrawal of its remaining troops from Yemen, rejecting any actions that could threaten the Kingdom or undermine regional stability.

In their telephonic conversation late Friday, the Pakistani and Saudi foreign ministers discussed the latest situation in the region, according to the Pakistani foreign office.

“FM [Dar] stressed that all concerned in the region must avoid any escalatory move and advised to resolve the issues through dialogue and diplomacy for the sake of regional peace and stability,” it added.

Separately, Saudi Arabia’s foreign ministry invited factions in south Yemen to hold a dialogue in Riyadh to “discuss just solutions to the southern cause.”

The ministry statement said the conference in the Saudi capital had been requested by Rashad Al-Alimi, President of the Yemeni Presidential Leadership Council, and the Kingdom urged all factions to participate “to develop a comprehensive vision” that would fulfill the aspirations of the southern people.

Disregarding previous agreements with the Arab Coalition, the STC separatist group launched a sweeping military campaign early in December, seizing the governorates of Hadramaut along the Saudi border and the eastern governorate of Al-Mahra in Yemen’s border with Oman. It also took control of the strategic PetroMasila oilfields, which account for a massive portion of Yemen’s remaining oil wealth.

The advance has raised the spectre of the return of South Yemen, a separate state from 1967 to 1990, while dealing a hammer-blow to slow-moving peace negotiations with Iran-backed Houthi rebels.

Saudi Arabia said the STC action poses a direct threat to the Kingdom’s national security, and regional stability. The Kingdom has reiterated the only way to bring the southern cause to a resolution is through dialogue.

On Thursday, Pakistan’s foreign office expressed solidarity with Saudi Arabia and reaffirmed Islamabad’s commitment to the Kingdom’s security, amid rising tensions in Yemen.

“Pakistan expresses complete solidarity with the Kingdom of Saudi Arabia and reaffirms its commitment to security of the Kingdom,” Pakistani foreign office spokesperson Tahir Andrabi told reporters at a weekly news briefing.

“Pakistan maintains its firm support for the resolution of Yemen issue through dialogue and diplomacy and hopes that Yemen’s people and regional powers work together toward inclusive and enduring settlement of the issue, safeguarding regional stability.”

Pakistan and Saudi Arabia signed a landmark defense pact in September last year, according to which aggression against one country will be treated as an attack against both. The pact signaled a push by both governments to formalize long-standing military ties into a binding security commitment.