Adviser on privatisation Muhammad Ali said on Wednesday that the government would receive Rs55 billion, not Rs10 billion, from the privatisation of the Pakistan International Airlines.
Speaking at a press conference in Islamabad alongside Information Minister Attaullah Tarar, Muhammad Ali said that the privatisation of PIA would bring Rs55 billion in revenue. The sale of 25 per cent of shares would alone yield Rs45 billion for the government.
The adviser said that the Field Marshal had played an important role in the privatisation process. "Had the airline not been sold, it might not have been able to operate flights even two years from now. PIA had incurred losses of Rs500 billion over the past ten years. The government would now be spared from further losses," he maintained.
He added that the airline’s privatisation would not damage the country’s reputation. “Our reputation would have been affected only if the PIA had become incapable of operating flights,” he said.
Muhammad Ali termed the PIA’s successful bidding as a major step forward. “Talented people and excellent service are not merely slogans. At one time, 50 aircraft were in operation, but mistakes led to the present situation. New planes will arrive and service delivery will improve.”
He added that PIA currently held a 30 per cent market share, down from 70 to 80 per cent previously. PIA operates on 18 international routes, mostly to the Middle East. “The benefit of privatisation is that we will no longer incur losses,” he said.
