ISLAMABAD: The International Monetary Fund (IMF) is encouraged that Pakistan will convert its cash-strapped national airline into a limited company but said on Wednesday it will see if the reforms go far enough in restructuring the company.
Parliament adopted a law on Monday to convert Pakistan International Airlines (PIA) into a limited company but it prevents the government from giving up its management control.
Prime Minister Nawaz Sharif had made the privatisation of the company a top goal when he came to power in 2013.
The privatisation of it and 67 other state-owned companies is also a major element of a $6.7 billion IMF package that helped Pakistan stave off default in 2013. The IMF has continued to release loan installments despite missed targets.
“We are encouraged that a consensus has been reached on corporatization of PIA,” Harald Finger, IMF mission chief for Pakistan, told Reuters in an email.
“We will need to study the approved bill and discuss with the authorities their emerging plans to run PIA strictly as a commercial entity and strengthen its performance in the absence of a transfer of management control to a private investor.”
PIA has accumulated losses of more than $3 billion.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription
