Senate rejects PIA conversion bill
The bill has now been referred to a joint session of the Parliament
Dunya News Report (Jibran Dost)
The PIA Corporation Conversion Bill 2015 to convert Pakistan International Airlines (PIA) Corporation into a public limited company was rejected by the House in the Senate on Friday (today). The bill was introduced by Federal Minister for Climate Change Zahid Hamid.
In an attempt to approve the bill by the House, Deputy Chairman of the Senate Abdul Ghafoor Haideri sought verbal consent twice, but was rejected by majority voice both the times.
The bill has now been referred to a joint session of the Parliament. The bill is expected to pass since the Pakistan Muslim League-Nawaz (PML-N) exercises an easy majority in a joint session of the Parliament.
In early February, rubber bullets, tear gas and water cannons were used as law enforcers engaged in an attempt to deter the protest of Pakistan International Airlines (PIA) employees against the privatization of the national carrier.
According to a Joint Action Committee (JAC) spokesperson, the strike proceeded because the government had not accepted the body’s four-point agenda.
PIA JAC’s four-point agenda:
- Government should immediately take back the bill passed on January 21 converting the national flag carrier into a public limited company.
- PIA’s employees be provided a chance to reform the airline. If the employees fail to do so, the government will have the freedom to do whatever it finds suitable.
- Privatisation, in any form, whether it is in form of a strategic partner or selling of 36 per cent or 1 pc of the organisation’s shares, is not acceptable to the employees.
- Government should immediately review the aviation policy and form a committee for this purpose comprising members from PIA employees’ JAC along with PIA experts Khusheed Anwar, Kamran Hasan and Salahuddin.
Prime Minister Nawaz Sharif also approved the Compulsory Service Maintenance Act 1952 for Pakistan International Airlines. After the implementation of this Act, all unions of PIA are dissolved and the protests become illegal.
Pakistan International Airlines (PIA) administration after the protest sacked 11 employees who were actively involved in the protests and strikes against the government’s decision to privatize the national carrier.
The employees were sacked on charges of violating the Essential Services Act, which the federal government imposed on Pakistan International Airlines (PIA) to crush the countrywide protest against privatization of the national carrier.
Various political parties including PPP, PTI, MQM and JI criticised the torture of the protestors. Whereas Pakistan Muslim League Nawaz’s (PML-Ns) Talal Chaudhry argued that different political parties were using the PIA incident for political gains.
At the same time, Pakistan and the International Monetary Fund (IMF) reached an understanding regarding the privatization of the national carrier.
According to the Ministry of Finance and Privatisation, the understanding to postpone the privatisation of the PIA by 6 months was reached during the last meeting that took place in Dubai.
In August 2015, the government promised the International Monetary Fund (IMF) that it will sell Pakistan International Airlines (PIA) by June 2016. Under the IMF program, the government is bound to sell at least 26 per cent shares of PIA to a strategic investor.
According to the IMF program document, the government had to complete the transaction by December 2015, however due to some misunderstanding on IMF’s part; government claims it would be able to complete the transaction by June 2016.
