Pakistan International Airlines Resumes European Flights, Points to Privatization Progress
Pakistan International Airlines (PIA) has marked a significant milestone in its efforts to regain credibility and attract investors as it resumed its flight operations to Europe. The development is seen as a key step towards further expansion, including services to the UK and US, which will enhance PIA's global competitiveness. The resumption of flights comes amidst ongoing privatization efforts, with critical reforms underway to simplify the airline's debt profile and enhance its marketability.
The privatization of PIA is gaining momentum with the implementation of reforms, including the abolition of an 18% sales tax on new aircraft purchases. This measure, agreed upon with the International Monetary Fund (IMF), is aimed at making the purchase of new airplanes more attractive for potential investors. Additionally, the transfer of PIA's financial losses to a holding company is also being considered, which will present the airline as a streamlined and debt-free entity with growth potential. The holding company structure will allow for the separation of legacy liabilities from the main business, further enhancing PIA's marketability and investment potential.
Federal Minister for Privatization Abdul Aleem Khan has welcomed the resumption of PIA flights to Europe, describing it as a significant milestone in the airline's privatization process. The minister stated that the recent development has convinced the public that they will be able to travel to Europe on PIA. Moreover, Aleem Khan announced that the airline will soon start operations to the UK and US, further expanding its global reach. The IMF has approved two key issues for the sale of PIA, which includes the abolition of the 18% sales tax and the transfer of the airline's losses to a holding company. This move is expected to make the purchase of PIA more attractive for investors and facilitate its privatization.
The successful implementation of these reforms and the resumption of PIA flights to Europe mark a crucial phase in the airline's journey towards privatization. The move is seen as a step towards regaining credibility and making PIA a more attractive investment opportunity. With the government's efforts to streamline the airline's operations and debt profile, PIA is poised to become a more competitive player in the aviation industry, potentially leading to improved services and lower fares for passengers.
