Finance Minister Muhammad Aurangzeb has announced that the privatisation process of Pakistan International Airlines (PIA) is expected to be completed by the end of June or early July. Following this, the Islamabad airport may also undergo privatisation shortly after.
During a news briefing on Saturday, Minister Aurangzeb emphasised the government’s stance on divesting from state-owned enterprises (SOEs), stating, “….the government has no business being in business.”
“We anticipate receiving bids for PIA within the next two to three weeks, and by the specified timeframe, we aim to transition ownership to investors,” he remarked. “Subsequently, the Islamabad airport will follow suit, with Karachi and Lahore airports to follow.”
However, the minister remained silent when questioned about the possibility of selling airspace to bidders. It’s noteworthy that airlines typically pay overflight fees to countries for utilising their airspace during flight routes.
The details regarding whether the government plans to retain partial ownership in PIA post-privatisation or sell all its shares were not provided by Minister Aurangzeb.
The minister concluded his visit to Washington, which involved 62 meetings aimed at explaining decisions, making pledges, and seeking support from multilateral and bilateral donors.
In a notable meeting with US Assistant Secretary of State Donald Lu, Minister Aurangzeb faced scrutiny back home in Pakistan due to accusations against Mr. Lu by former prime minister Imran Khan of involvement in toppling his government. Aurangzeb clarified that the hosts, not visitors, determine meeting agendas.
Regarding Pakistan’s economic strategy, Aurangzeb highlighted expanding the tax net, energy reforms, and SOE privatisation as key pillars. He acknowledged the gap between policy formulation and implementation, citing lengthy litigation processes within tax tribunals. Plans for end-to-end digitalisation to enhance tax collection efficiency were also disclosed.
Aurangzeb emphasised the importance of providing reliable energy to both domestic and commercial sectors for economic growth. Steps to curb electricity theft and leakage, as well as transitioning distribution to the private sector, were highlighted as ongoing efforts by the government.