The privatization delays of Pakistan International Airlines (PIA) have led to significant challenges, with nine of its aircraft grounded, including five Airbus A320s, three Boeing 777s, and one ATR craft. The primary cause is a shortage of spare parts, exacerbating administrative difficulties for the national airline.
The uncertainty surrounding PIA’s future, compounded by its heavy reliance on the State Bank of Pakistan (SBP), has raised concerns among leasing companies. Pakistan’s CCC rating against business policies has prompted these companies to express worries, resulting in a risk exposure premium on payments for leasing and spare parts.
In response to the pressing situation, Caretaker Prime Minister Anwaarul Haq Kakar has issued directives to expedite the privatization process of PIA. Emphasizing the need for transparency, Prime Minister Kakar discussed the privatization process during a meeting with Aviation Adviser Air Marshal (retd) Farhat Hussain. The government, recognizing the urgency to safeguard the national exchequer from further financial losses, has prioritized the privatization of state-owned enterprises.
Reports have highlighted the strain on PIA’s operations and financial health caused by the delayed privatization. These challenges underscore the imperative for prompt action to address both financial and operational concerns within the national carrier. As leasing companies express their apprehensions and aircraft remain grounded, the unfolding situation demands a swift resolution to ensure the stability and viability of Pakistan International Airlines.