Summary The airlines purchased fuel worth Rs 22 billion in the January-September 2015 period
KARACHI (Dunya News) – Deficit of the Pakistan International Airlines (PIA) stands at Rs 19 billion despite 42 percent shrinkage owing to falling prices of oil products in international market in the last nine months.
From January 2015 to September 2015, revenue of the national airlines decreased by nine percent. The total revenue of PIA in the last nine months was Rs 69 billion.
Plunge in oil prices in the international market resulted in 42 percent decrease in PIA’s deficit.
The airlines purchased fuel worth Rs 22 billion in the January-September 2015 period.
On January 2, the Senate passed a resolution which nullified presidential ordinance pertaining to privatization of the corporation.
The government was seeking privatization of the national airlines. However, the Senate’s move forced the government to seek other options.
On the other hand, on January 13, the government assured International Monetary Fund (IMF) of privatization of Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA) and State Life Insurance Corporation of Pakistan (SLIC) in the ongoing year.
Pakistan provided a roadmap of the privatization spree under IMF’s Economic Reforms Programme.
According to the blueprint, steel mills would be privatized by September 2016. While by June, at least 26 percent shares of the national airlines would also be sold.
Meanwhile, the government is desirous of selling ten percent to 15 percent shares of the State Life, Kot Addu Power Company’s 40 percent and Mari Petroleum Limited’s 18 percent shares in the ongoing year.
However, PIA employees have strongly opposed the privatization. The irked employees protested against the proposed privatization time and again in different offices including Karachi and Peshawar.
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