PAK’s national airline was finally sold, from IMF pressure to Army’s entry, know what is the matter?

Pakistan News In Hindi: Pakistan’s national airline (PIA) has finally got a new owner. Arif Habib Consortium has bought 75 percent shares of PIA by making the highest bid of 135 billion Pakistani rupees (about Rs 4,317 crore). Companies like Lucky Cement and Airblue also participated in this auction but their bid was lower than Arif Habib Group.

Lucky Cement had bid 101.5 billion Pakistani rupees (about Rs 3,246 crore) for PIA, while Airblue’s bid was 26.5 billion Pakistani rupees (about Rs 847 crore). As per the procedure laid down by the government, 92.5 percent of the total amount received from the auction will be spent on reforming, restructuring and strengthening the operations of PIA.

Who is Arif Habib?

Arif Habib Consortium is a group of four companies with presence in sectors like fertilizer, investment, energy and education. This group is counted among the most experienced and trusted corporate houses of Pakistan. The government hopes that the entry of this consortium will improve the financial condition and services of PIA.

The airline was running in loss for a long time

Currently PIA has a total of 32 aircraft in its fleet, which include aircraft like Airbus A320, Airbus A330, Boeing 737 and Boeing 777. Despite this, the airline was running in losses for a long time. Poor management, lack of flights, frequent complaints from passengers and mounting debt had weakened PIA.

The biggest blow to PIA’s reputation came from the plane crash in Karachi in the year 2020. After this accident, it was revealed that the licenses of more than 260 pilots of PIA were doubtful or fake. Due to this, many countries banned PIA flights, due to which the airline’s international earnings almost came to a standstill.

IMF had pressure on the government

As the burden of losses increased, it became difficult for the Government of Pakistan to handle PIA. Meanwhile, pressure increased on the government to get a relief package from the International Monetary Fund (IMF). IMF clearly said that loss making government companies should be privatized. Pakistan needs a package of about $7 billion from the IMF, and privatization of PIA is considered to be part of that condition.

Permission to add two new partners also

According to Muhammad Ali, advisor to PIA’s Privatization Committee, the government’s objective is not just to sell the airline but to make it self-reliant and strong. He said that two-thirds of the payment can be taken initially and one-third later. Besides, permission has also been given to add two new partners after winning the bid.

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The name of Army Fertilizer Company was also included in the auction process earlier but at the last moment it withdrew itself. According to media reports, if any military or government organization had won this deal, it would have sent a wrong message to the IMF. The IMF wants PIA to go completely into private hands so that there is no government or military control over the airline.