Rs125bn to be injected into PIA under post-privatisation plan: Senate body told
ISLAMABAD: The Senate Standing Committee on Defence was informed on Tuesday that an investment of Rs125 billion will be injected into Pakistan International Airlines (PIA) over the next 15 months as part of its post-privatisation plan.
Briefing the committee, Secretary Defence Lieutenant General Muhammad Ali said a shortage of aircraft and limited resources remain the biggest challenges facing the national flag carrier, but expressed optimism that PIA’s flight operations to the United States are also likely to resume soon.
The meeting, held under the chairmanship of Senator Muhammad Talha Mahmood, was attended by Senator Dr Zarqa Suharwardy Taimur, Senator Umer Farooq and Senator Atta-ul-Haq. The committee expressed serious concern over exorbitant airfares on flights to Quetta and urged the Ministry of Defence to introduce an effective fare-capping mechanism. Members noted that residents of Balochistan are facing severe hardship due to unusually high airfares. On the committee’s recommendation, the Secretary Defence assured that a capping mechanism would be devised to control fare inflation.
During the meeting, the Secretary Defence also briefed the committee on the PIA privatisation process, reiterating that substantial financial investment would help stabilise operations and address the shortage of aircraft. Agenda items relating to the Pakistan–Saudi Arabia Defence Agreement and the prevailing security situation along the Pakistan–Afghanistan border were taken up in camera.
The committee was also briefed on the suspension of PIA flight operations to and from Chitral. An Additional Secretary of the Ministry of Defence informed members that the route was suspended due to sustained financial losses. However, following privatisation, optimism was expressed that flights to Chitral would be restored. The Secretary Defence said promotion of tourism in Chitral and Gilgit-Baltistan could play a key role in reviving air operations, stressing the need for coordination between the Ministry of Defence and tourism-related departments. He further informed the committee that, on government directives, chartered helicopter services for civilians are being introduced and work is underway to establish heliports in Gilgit-Baltistan.
The committee welcomed the privatisation of PIA, with the chairman observing that governments are meant to formulate policy rather than run businesses, and that privatisation would help reduce the burden on the national exchequer caused by repeated bailout packages. He expressed hope that professional management would enable PIA to regain its former standing.
Members also raised concerns over shortcomings in airport protocol arrangements, the validity period of airport passes, and the poor condition of washroom facilities at airports. The Pakistan Airports Authority (PAA) and other relevant stakeholders were directed to upgrade airport facilities to international standards. The committee was informed that the federal cabinet has approved the outsourcing of services at three major airports to improve service delivery. The chairman directed that the validity of airport passes be increased from one year to two years to reduce inconvenience.
At the conclusion of the meeting, the committee appreciated the performance of security institutions and termed the Pakistan–Saudi Arabia Defence Agreement a positive development. Members also urged the Federal Minister for Defence to ensure regular attendance at meetings of the standing committee. Syed Naveed Jamal
