Feature Story: Privatization of PIA

Pakistan moves to sell national airline in test case for privatization drive

Dear Readers,

In a significant shift, Pakistan is pushing to privatize its debt-laden national carrier, Pakistan International Airlines (PIA). As the country grapples with a high-debt, low-growth crisis, this move is part of a broader plan to offload over 80 state-owned enterprises, including power plants, utilities, and international assets. The International Monetary Fund (IMF) has stipulated this privatization as a condition for a crucial multi-billion dollar bailout.

PIA, with a staggering $3 billion debt and over $3.6 billion in losses over the past 20 years, is emblematic of the challenges facing Pakistan's economy. Despite its significant market share, the airline struggles with overstaffing, operational inefficiencies, and a mandate to service unprofitable routes.

The government's efforts to sell PIA, backed by the powerful Special Investment Facilitation Council (SIFC), mark a pivotal test case in its privatization drive. While the move has garnered some support, there is skepticism about its potential impact on the broader economy.

To delve deeper into this complex and timely issue, read the full feature story that I have produced for Nikkei Asia by clicking the link below:

Click Here to Read the Full Story

Best regards,

Adnan Aamir