Pakistan has announced plans to privatize Pakistan International Airlines (PIA), its national carrier that has been running at a loss. The move is part of the country's efforts to outsource its airport operations, which is in line with an agreement with the International Monetary Fund (IMF).
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The decision was made during a meeting of the Cabinet Committee of Privatisation, headed by Finance Minister Ishaq Dar. Following a change in the law by the Parliament, PIA has been included in the list of active privatization projects under the ongoing privatization program, according to a statement by the finance ministry.
The committee has also approved the hiring of a financial adviser for the sale of Roosevelt Hotel in New York, which is an asset of PIA Investment Limited. After a fake pilot scandal led to the suspension of services, Pakistan is hoping to resume PIA flights to the UK in the next three months.
The European Union's Aviation Safety Agency revoked PIA's authorization to fly to the bloc in 2020, leading to the suspension of PIA flights to Europe and the UK. The decision to privatize PIA, which has incurred massive losses and debts, was made after Pakistan agreed to implement fiscal discipline plans with the IMF. Pakistan secured a $3 billion bailout from the IMF in June.