KARACHI: Britain’s Department of Transport has made “no decision” yet regarding the Pakistan International Airlines’ (PIA) restricted status in the United Kingdom (UK), a PIA spokesman said on Tuesday.
PIA was slapped with a ban by the European Union Aviation Safety Agency (EASA), UK and United States (US) authorities after Pakistan opened an investigation into the validity of pilots’ licenses following a deadly PIA plane crash in Karachi that killed 97 people in May 2020.
PIA resumed its operations in Europe in Jan. after EASA lifted its ban, however, the debt-ridden airline still remains barred from flying to the UK and the US. A delegation of the UK’s Department for Transport also visited Pakistan this year to evaluate the airline’s safety standards.
Pakistani officials have expressed hopes that PIA will resume flights to the UK in the next three months, but some local media outlets reported on Tuesday that the UK authorities had decided to keep the airline on their air safety list.
“No announcement has been made by the British Department of Transport nor has any letter been received,” PIA spokesman Abdullah Khan told Arab News. “No decision has been taken by the British Department of Transport yet.”
Khan said all Pakistani institutions related to aviation were in constant contact with the British authorities and carrying out their work in unison.
“Any speculation in this regard should be avoided,” he added.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds amid an effort to reform state-owned enterprises under a $7 billion International Monetary Fund (IMF) program secured last year.
Late last year, a deal fell through after a potential buyer reportedly offered $36 million for a 60 percent stake in the national flag carrier, a fraction of the asking price of approximately $303 million. Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.
‘No decision’ yet on Pakistan International Airlines’ restricted status in UK — PIA spokesman
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‘No decision’ yet on Pakistan International Airlines’ restricted status in UK — PIA spokesman
- The statement comes after some local media outlets reported that British authorities had decided to continue their restrictions on the airline
- The debt-ridden airline was slapped with a ban by European, UK and US authorities after a pilots’ licensing scandal emerged out of a 2020 plane crash
Pakistan finance chief calls for change to population-based revenue-sharing formula
- Muhammad Aurangzeb criticizes current NFC formula, says it is holding back development
- Minister says Pakistan to repay $1.3 billion debt in April as economic indicators improve
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Saturday the country’s revenue-sharing formula between the federal and provincial governments “has to change,” arguing that allocating the bulk of funds on the basis of population was holding back long-term development.
The revenue-sharing is done under the National Finance Commission (NFC) Award that determines how federally collected taxes are divided between the center and the provinces. Under the current formula, much of the distribution weight is based on population, with smaller weightages assigned to factors such as poverty, revenue generation and inverse population density.
“Under the NFC award, 82 percent allocation is done on the basis of population,” Aurangzeb said while addressing the Federation of Pakistan Chambers of Commerce & Industry’s regional office in Lahore. “This has to change. This is one area which is going to hold us back from realizing the full potential of this country.”
Economists and policy analysts have long suggested broadening the NFC criteria to give greater weight to tax effort, human development indicators and environmental risk, though any change would require political consensus among provinces, making reform politically sensitive.
Aurangzeb also highlighted the economic achievements of the country in recent years, saying Pakistan’s import cover had improved from roughly two weeks just a few years ago to about 2.5 months currently, adding that the government had repaid a $500 million Eurobond last year.
“The next repayment is of $1.3 billion in April,” he continued, adding that “we will pay these obligations, which are the obligations of Pakistan, as we go forward.”
The minister also noted that unlike in 2022, when devastating floods forced Pakistan to seek international pledges at a Geneva conference, the government did not issue an international appeal during more recent flooding, arguing that fiscal buffers had strengthened.
“This time, the prime minister and the cabinet decided that we do not need to go for international appeal because we have the means,” he said.
He reiterated the government was pursuing export-led growth to avoid repeating past boom-and-bust cycles driven by import-led expansion that quickly depleted foreign exchange reserves and pushed Pakistan back into International Monetary Fund programs.
