Pakistan has already paid over $4.3 million (around Rs. 1.2 billion) to a financial advisor for the privatization of PIA, but the process remains incomplete.
The National Assembly’s Standing Committee on Privatization revealed that about 63% of the advisory fee has been paid, with the total cost expected to be $6.9 million. The financial advisor will only receive further payments once the privatization process is successfully completed.
The previous attempt to sell PIA was unsuccessful, as the bid did not meet the government’s requirements. This has caused delays in the privatization process. The committee also discussed PIA’s assets, including the Roosevelt Hotel in New York, which has often been part of privatization talks in the past.
In addition to PIA, the meeting also highlighted the financial difficulties faced by the Utility Stores Corporation. The state-run retail network has been struggling with financial losses, raising concerns about its sustainability and future operations.
The privatization of PIA is part of the government’s broader plan to reduce financial losses and improve the efficiency of state-owned enterprises. However, the delays in finalizing the sale have raised concerns about the effectiveness of this strategy.
For now, PIA continues to operate under financial stress, and the government is still searching for a suitable buyer. The success of the privatization plan remains uncertain, but authorities are working to resolve the challenges and complete the process as soon as possible.
