Latest news with #PIA
Express Tribune
a day ago
- Business
- Express Tribune
USC closure
Listen to article The government's decision to shutter the loss-making Utility Stores Corporation (USC) by the end of July is a painful but necessary corrective to decades of fiscal bleeding. Between July and December 2024 alone, USC lost over Rs6 billion and has net liabilities of over Rs50 billion. Meanwhile, despite offering low prices, USC actually saw sales crash by 50% in recent times. This also puts the estimated Rs29 billion needed for golden handshakes into perspective. If no action was taken, USC would have spent the same amount just to keep running over the next few years. Although the government is considering limiting payouts to only 5,217 'regular' employees, after wasting billions for decades, skimping on severance pay is not the way to go. Future savings can still be reallocated to more productive initiatives that support low-income citizens. In the meantime, the government must ensure price control enforcement in areas that were highly reliant on utility stores to minimise the impact of closures on shoppers who actually relied on them. While a resolution for USC appears nearly finalised, progress on the much-publicised privatisation deals of other SOEs has been minimal. PIA has failed to attract suitable bidders despite multiple attempts, and the recent deal with Russia to revive Pakistan Steel Mills may backfire. None of the two dozen SOEs up for privatisation have sparked the kind of interest that would inspire government confidence. The closure of USC proves the government can make tough choices. Now, it must accelerate the pace of decision-making - from years to weeks — because, like USC, many state-owned enterprises are losing so much money that waiting to sell them for cents on the dollar could end up being more costly than shutting them down and salvaging what remains.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Britain lifts ban on Pakistani airlines
Ground staff work beside the state-run Pakistan International Airlines plane preparing to take off for Paris. (AP pic) ISLAMABAD : Britain has lifted restrictions on Pakistani airlines, the UK embassy in Islamabad said on Wednesday, ending a five-year ban on the country's beleaguered national carrier. Flag carrier Pakistan International Airlines was barred from flying to Britain in June 2020, a month after one of its aircraft plunged into a Karachi street, killing nearly 100 people. The disaster was attributed to human error by the pilots and air traffic control and was followed by allegations that nearly a third of the licences for its pilots were fake or dubious. The UK air safety committee had decided to lift the ban following aviation safety improvements in Pakistan, the British High Commission in Islamabad said, adding that decisions on de-listing states and air carriers were made 'through an independent aviation safety process'. 'Based on this independent and technically driven process, it has decided to remove Pakistan and its air carriers from the (UK Air Safety) List,' it said in a statement. The move comes after European regulators lifted a four-year ban on PIA, with the Pakistani state-owned carrier resuming flights to Europe in January. PIA, which employs 7,000 people, has long been accused of being bloated and poorly run — hobbled by unpaid bills, a poor safety record and regulatory issues. Pakistan's government has said it is committed to privatising the debt-ridden airline and has been scrambling to find a buyer. In 2024, a deal fell through after a potential buyer reportedly offered a fraction of the asking price. PIA came into being in 1955 when the government nationalised a loss-making commercial airline and enjoyed rapid growth until the 1990s.
Express Tribune
2 days ago
- Business
- Express Tribune
Flight ban no more
Listen to article The UK's decision to remove Pakistan from its Air Safety List this week is a rare bright light in the aviation sector, especially relating to PIA, which was the only local airline still operating regular flights to the UK when the ban was imposed in 2020. The move will be a massive windfall for PIA, which was unable to capitalise on lucrative UK routes, losing customers to Middle Eastern competitors and later, British Airways. The success of the latter shows that despite the high quality of service and relatively low prices of the Middle Eastern giants, there is still a significant market for direct flights. Indeed, prior to the shutdown, the UK routes were consistently among PIA's busiest and most lucrative flights. The ban's origins were steeped in tragedy - the 2020 PIA crash in Karachi that killed 98 people, followed by the claims of then-aviation minister Ghulam Sarwar Khan that nearly one-third of Pakistani pilots held dubious licences. But although over 150 pilots were grounded for various licensing discrepancies, investigations cleared all except seven pilots who were then terminated. The damage though had already been done, and it took four years for the EU to withdraw their ban last year - leading to the resumption of flights to Paris and the possibility of addition of other EU routes - and even longer for the UK ban to be withdrawn. The government is also eyeing restarting PIA flights to New York, and although this proposal still appears to be in its infancy, it helps make PIA all the more appealing to any potential suitors. From a consumer perspective, the approval will probably not have an effect for several weeks, at the minimum, as re-authorisation of PIA's routes and reallocation of aeroplanes will take time. Other airlines will likely have to acquire additional long-haul aircraft if they want to start their own flights, which would take even longer and be more costly to set up. Still, the UK remains one of the most popular routes for expats and Pakistani tourists, and more competition on direct routes will benefit consumers, while also helping well-run local airlines grow.
Daily Tribune
3 days ago
- Business
- Daily Tribune
Britain lifts ban on Pakistani airlines
Britain has lifted restrictions on Pakistani airlines, the UK embassy in Islamabad said on Wednesday, ending a fiveyear ban on the country's beleaguered national carrier. Flag carrier Pakistan International Airlines was barred from flying to Britain in June 2020, a month after one of its aircraft plunged into a Karachi street, killing nearly 100 people. The disaster was attributed to human error by the pilots and air traffic control, and was followed by allegations that nearly a third of the licences for its pilots were fake or dubious. The UK Air Safety Committee had decided to lift the ban following aviation safety improvements in Pakistan, the British High Commission in Islamabad said, adding that decisions on de-listing states and air carriers were made 'through an independent aviation safety process'. 'Based on this independent and technically-driven process, it has decided to remove Pakistan and its air carriers from the (UK Air Safety) List,' it said in a statement. The move comes after European regulators lifted a four-year ban on PIA, with the Pakistani state-owned carrier resuming flights to Europe in January. Prime Minister Shehbaz Sharif welcomed the lifting of the ban as 'an important milestone for the country'. 'The lifting of the ban on Pakistani flights by the UK is a source of relief for Pakistanis residing in Britain,' he added.
Express Tribune
3 days ago
- Business
- Express Tribune
PIA returns to UK skies after five years
PIA's bidding is expected to take place in the last quarter (October-December) of the current calendar year, said Muhammad Ali, Adviser to the Prime Minister on Privatisation. photo: file Listen to article Britain has lifted a five-year ban on Pakistani airlines, allowing them to apply to resume UK flights just as the government steps up efforts to privatise the Pakistan International Airlines. The ban was imposed in 2020, days after the government launched an investigation into the validity of pilot licences issued in the country following a PIA plane crash that killed 97 people. British High Commissioner Jane Marriott said the lifting of the ban followed safety improvements by Pakistani authorities. The decision comes just months after the European Union took similar steps. "I'm grateful to aviation experts in the UK and Pakistan for their collaborative work to drive improvements to meet international safety standards. While it will take time for flights to resume, once the logistics are in place, I look forward to using a Pakistani carrier when visiting family and friends," she said. The lifting of the ban is expected to bring immense relief and opportunity to the over 1.6 million British residents of Pakistani heritage and thousands of British nationals living in Pakistan. It also comes as a potential catalyst for enhancing the £4.7 billion bilateral trade between the two countries. With airspace now cleared, the skies are once again open for stronger people-to-people connections and economic cooperation between Pakistan and the United Kingdom. While several private Pakistani airlines operate domestically and on regional routes, primarily to the Middle East, PIA has historically been the only carrier to operate long-haul flights to Britain and the European Union. PIA had previously estimated an annual revenue loss of around Rs40 billion ($144 million) due to the ban. The airline has long considered UK routes, including London, Manchester, and Birmingham, among its most profitable, and holds sought-after landing slots at London's Heathrow Airport that could become active again. PIA's spokesperson said the airline was finalizing preparations to resume UK flights "in the shortest possible time" and had submitted its proposed schedule. Flights would resume with the Islamabad-Manchester route, with three weekly flights planned initially pending schedule approval, the spokesperson added. Earlier this month, the Privatisation Commission approved four groups to bid for a 51-100% stake in PIA. Final bids are expected later this year. The government is hoping that recent reforms, which led to the airline's first operating profit in 21 years - will help attract buyers under a broader IMF-backed privatisation push. Defence Minister Khawaja Muhammad Asif told a news conference on Wednesday that the resumption of all routes would improve PIA's value ahead of the privatisation. He also said there were plans to restart flights to New York. "Pakistan will apply for an operating licence to resume direct flights to the UK," he said. Asif criticised an irresponsible statement by then-Aviation Minister Ghulam Sarwar Khan of the Pakistan Tehreek-e-Insaf (PTI) government for triggering the ban on PIA operations in European countries and the UK. Ghulam Sarwar's remarks caused irreparable damage to the reputation of both PIA and Pakistan, he added. In response to a question, he said that various consortiums had shown interest in the PIA privatisation process. Meanwhile, Prime Minister Shehbaz Sharif, welcoming the UK Air Safety Board's decision, said the "positive development" would improve Pakistan's international reputation and further strengthen bilateral cooperation. The prime minister also congratulated the defence minister on the lifting of the ban. In a meeting held at the Prime Minister's Office, PM Shehbaz commended the efforts of the Defence Minister and his team, as well as the Aviation Division, for their dedicated work in achieving this diplomatic and operational breakthrough. "The resumption of Pakistani flights to the UK marks an extremely important achievement for the country," the prime minister said, noting that this step would greatly facilitate travel for the large Pakistani diaspora in the UK and boost tourism between the two countries. (With additional input from agencies)
