ISLAMABAD, May 2 (APP): Federal Minister for Privatization, Board of Investment & Communications Abdul Aleem Khan on Thursday said that 10 big firms had so far submitted initial documents expressing their interest for buying of Pakistan International Airlines (PIA).
The Privatization Commission had extended deadline for 15 days, Letters of Interest (LoIs) could now be submitted till May 18 and there would be no more extension in the date, he said while talking to the media.
He said he had obtained the prime minister’s permission for extension in the deadline as the 10 companies, which had expressed interest in acquiring the PIA, sought a two weeks time to form a consortium with international firms for the purpose.
The minister said that some newspapers did not publish facts regarding the PIA’s privatization. In fact the situation was encouraging. The airline still had much potential as with addition of new planes it could be converted into a profitable entity.
He said that the privatization of PIA with an accumulated loss of Rs 830 billion was in the larger national interest, and Bilawal Bhutto Zardari would surely support the process.
He said that the process for privatization of Pakistan Steels Mill, Discos, First Women’s Bank, House Building Finance Corporation and other institutions was also underway.
Unfortunately such loss making enterprises were putting a huge burden on the national economy, he said.
It was not the government’s job to run businesses and that was why the private sector would be involved for bringing in modern innovative technologies to turn entities into the profit oriented organizations and improve their services delivery as well, the minister added.
Aleem Khan said that all the liabilities of PIA had been cleared by the government and after privatization it would be beneficial for the new owners as it still had bigger marker share than its competitors.
The minister said that the PIA’s Hajj and Umrah flights to Saudi Arabia were the most profitable while its direct flights to Europe, the United States, Canada, and other Middle East countries would also be attracting for passengers.
He said that the LOIs would be opened in the presence of the prospective everyone on May 18 and as the Federal Minister for Privatization he would ensure full transparency into the entire process.
To a question, the minister said that government also wanted to privatize six to seven power distribution companies (Discos) and only three would continue to work under the government’s supervision for strategic point of view.
