Government Appoints Financial Advisor Amid PIA Privatization

The interim federal government has officially approved the appointment of a financial advisor for the privatization of Pakistan International Airlines (PIA). The decision was made during a Privatization Board meeting chaired by the Minister for Privatization, Fawad Hasan Fawad. Ernst & Young, leading a consortium, emerged as the successful bidder, and the board commended the transparency in the selection process.

Facing persistent financial challenges, PIA has struggled to remain solvent for several years. Recent setbacks include revelations by former Aviation Minister Ghulam Sarwar Khan about fake licenses held by the airline’s pilots. Despite hopes raised by a government-approved financial aid of Rs8 billion ($28.8 million) last month, the caretaker administration is proceeding with the privatization process.

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Caretaker Minister for Parliamentary Affairs Murtaza Solangi affirmed PIA’s inclusion in the privatization list. He explained that the previous government had formulated a privatization plan, which the caretaker government is now implementing. While flight operations were briefly halted, funds were arranged to revive them.

Calls for privatizing PIA, citing its economic nonviability, have been ongoing. Former Aviation Minister Khawaja Saad Rafique emphasized the necessity of privatization to prevent the carrier from ceasing operations. The decision to privatize PIA was made during the final days of the PDM regime, with the Cabinet Committee on Privatization, chaired by then Finance Minister Ishaq Dar, including PIA in the active privatization projects.