Finance Minister Muhammad Aurangzeb has announced that the process of privatizing Pakistan International Airlines (PIA) is anticipated to be finalized by the end of June or early July, with Islamabad airport potentially following suit shortly after.
In a Saturday afternoon news briefing, Minister Aurangzeb reiterated the government’s stance on divesting from state-owned enterprises (SOEs), stating, “The government has no business being in business.”
“We expect the bids for PIA to come in the next two to three weeks, and by the end of June or early July, we can move it to the investors,” he stated. “The Islamabad airport would be the next,” he added, “followed by the airports in Karachi and Lahore.”
However, when pressed about whether Pakistan was also selling its skies to the bidders, Minister Aurangzeb remained silent.
Airlines typically pay overflight fees to the governments of each country they fly over on their routes, covering the use of air traffic control and navigation services.
The minister did not clarify whether the government would retain some shares in PIA after privatization or sell all its shares.
Minister Aurangzeb concluded his visit to Washington on Sunday after a week of 62 meetings, including engagements with multilateral and bilateral donors during the spring meetings of the International Monetary Fund (IMF) and the World Bank. Additionally, he held discussions with visiting finance ministers, heads of financial institutions, and senior US officials.
A meeting with US Assistant Secretary of State Donald Lu garnered significant attention in Pakistan, as former Prime Minister Imran Khan accuses Mr Lu of involvement in toppling his government. However, Minister Aurangzeb emphasized that visitors do not determine whom they meet; rather, it is the hosts who decide.
During a news conference at the Pakistan Embassy, Minister Aurangzeb outlined his economic strategy, focusing on expanding the tax net, implementing energy reforms, and privatizing SOEs.
He acknowledged the gap between policies and implementation, citing delays in litigation within tribunals managed by the Federal Board of Revenue (FBR) and the law ministry. The government aims to expedite decision-making processes, including end-to-end digitalization to improve tax collection.
Furthermore, Minister Aurangzeb highlighted efforts to identify individuals living beyond their means and bring them under the tax net, emphasizing the importance of providing energy to both domestic and commercial consumers for economic upliftment.
In conclusion, Minister Aurangzeb affirmed the government’s commitment to halting leakages and theft of electricity, along with transitioning distribution into the private sector, underscoring the clarity of the government’s direction in this regard.
