PIA’s privatisation
THE management control of PIA has finally been transferred to a consortium comprising private investors and the Fauji Foundation. The development marks a new chapter in the history of the airline whose fortunes declined over the past two decades. According to an official statement, the transfer follows the completion of all local and international regulatory approvals, including permissions from global lenders and specialised tax concessions. The privatisation authorities believe the takeover will breathe new life into the airline. The consortium has paid the government Rs10bn upfront and committed to injecting another Rs125bn as fresh equity to fund restructuring, fleet renewal, route expansion and service improvement. PIA has long suffered massive financial losses, political interference and years of managerial drift. The promised capital injection could provide it with the resources it has lacked. The new PIA chairman’s emphasis on heritage, trust ...