Interim Cabinet Endorses Restructuring Plan For PIA

The interim federal cabinet, chaired by Caretaker Prime Minister Anwaarul Haq Kakar in Islamabad, granted approval on Tuesday for the restructuring of the Pakistan International Airlines (PIA) and the privatization of the First Women Bank Limited. Additionally, the cabinet sanctioned the appointment of a financial advisor to oversee the financial and administrative reorganization of PIA.

During the meeting, it was disclosed that PIA is slated to undergo a bifurcation process, resulting in the formation of two distinct entities known as TopCo and HoldCo. Under this arrangement, fundamental operations such as basic engineering, ground handling, cargo services, flight kitchen, and training will be consolidated under TopCo. Meanwhile, HoldCo will be responsible for overseeing departments like PIA Investment, Precision Engineering Complex, various subsidiaries, and properties. The envisioned restructuring aims to make PIA more attractive to potential investors, according to reports from Radio Pakistan.

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Furthermore, the cabinet directed its sub-committee on privatization to promptly address matters concerning unresolved claims by state-owned entities against the national flag carrier.

In a move aimed at judicial efficiency, the cabinet granted approval for the conversion of four out of eight accountability courts in Peshawar into special courts. This decision is accompanied by the approval of Chief Justice Peshawar High Court’s proposal regarding the appointment of judges for these courts. The remaining courts will retain their designation as accountability courts, and this adjustment is anticipated to have no additional financial impact on the national exchequer.

The interim cabinet also greenlit the de-regulation of prices for medicines not included in the National List of Essential Medicines. The proposal entails exempting the prices of non-essential medicines from the Drugs Act of 1976, with corresponding amendments to the Drug Pricing Policy of 2018. The Pakistan Medical and Dental Council has been tasked with ensuring that doctors refrain from prescribing vitamins, multivitamins, minerals, and over-the-counter products to patients.

These decisions underscore a proactive approach by the interim federal cabinet to address key issues and implement reforms in sectors ranging from aviation and banking to judiciary and healthcare. The restructuring of PIA, privatization endeavors, judicial streamlining, and pharmaceutical policy adjustments collectively reflect an overarching commitment to governance and efficiency during the interim period.