The Finance Minister Senator Mohammad Ishaq Dar chaired a meeting at the Ministry of Finance today to review the reform and restructuring plan of PIA including strategic partnership.
The Finance Minister said that the government views Strategic Public-Private Partnership aimed at utilizing private sector management expertise to overcome public sector inefficiencies. He said that over the years, mismanagement and structural inefficiencies in the state-owned enterprises (SOEs) have marred public sector governance. He said that continuous injection of resources into the SOEs is fiscally not sustainable on an indefinite basis and the most viable option available is to restructure them through strategic partnership with the private sector through 26% offloading of shares.
The Minister said that we aim to enhance welfare of the employees of the SOEs by making these organizations profitable and interest of the employees will be protected. The Minister added that by injection of 26% private sector strategic partners will in no way hamper the overall status of the SOEs other than to improve their performance and to ensure capacity building of their employees.
Mr. Shujaat Azeem, PM’s Advisor on Aviation briefed on the reforms being introduced in PIA. He also informed about the progress of leasing of more efficient airplanes to enhance the performance of the national carrier.
The meeting was also attended by Mr. Muhammad Zubair, Chairman Privatization Commission, Rana Asad Amin, Advisor to Finance Ministry and senior officials of the Ministry of Finance.