On Monday, the Secretary of the Privatization Commission informed the National Assembly Standing Committee on Privatization that Pakistan International Airlines (PIA) needs at least $500 million in new investments to achieve profitability and self-sufficiency. The official explained that any investor acquiring PIA would need to inject this significant amount to revamp the airline, as its current financial state is untenable with insufficient funds to maintain its planes.
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The committee was also updated on the reluctance of Gulf countries to invest in PIA. The briefing revealed that early privatization of PIA could save the country Rs. 100 billion annually and ensure the protection of employees’ rights. The panel supported expediting the privatization process and passed the Privatization Commission Amendment Bill 2023 to facilitate a faster privatization process. PIA’s annual losses are reported to be between Rs. 80 to 100 billion, contributing to a total loss of Rs. 830 billion over recent years. Additionally, PIA employees have demanded a 50 percent salary increase, despite a 15-20 percent raise granted in January 2023.
