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A man walks out from a gate of a house where campaign posters of Pakistan Muslim League-Nawaz led by Pakistan's former prime minister Nawaz Sharif are put up ahead of the general elections, in Lahore, Pakistan, February 5 2024. Picture: NAVESH CHITRAKAR/REUTERS
Islamabad — Pakistan’s election commission has asked the caretaker government to “refrain” from finalising a deal to privatise flag carrier Pakistan International Airlines pending a review, a letter from the poll panel says.
The February 1 letter from the panel to Pakistan’s cabinet secretary comes days ahead of the February 8 general elections.
The caretaker government is close to putting the loss-making airline up for sale after completing a restructuring plan. In deep economic crisis, Pakistan agreed in June to overhaul loss-making state firms under a deal with the IMF for a $3bn bailout.
The outgoing government of Prime Minister Shehbaz Sharif decided to privatise the airline just weeks after signing the IMF agreement.
The caretaker administration, which took office in August to oversee the February 8 election, was empowered by the outgoing parliament to take any steps needed to meet the budgetary targets agreed with the IMF.
The letter from the election panel sought documents related to the Pakistan International Airlines deal to review them.
“The caretaker government should refrain from taking any further steps including signing of an agreement in this regard till a decision is made by this commission,” the letter states.
The airline had liabilities of 785-billion Pakistani rupees ($2.8bn) and accumulated losses of 713-billion rupees by June last year. Its CEO has said losses in 2023 were likely to be 112-billion rupees.
Progress on privatisation will be a key issue if the new government goes back to the IMF once the current bailout programme expires in March, analysts say.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Pakistan poll panel pauses flag carrier sale
Islamabad — Pakistan’s election commission has asked the caretaker government to “refrain” from finalising a deal to privatise flag carrier Pakistan International Airlines pending a review, a letter from the poll panel says.
The February 1 letter from the panel to Pakistan’s cabinet secretary comes days ahead of the February 8 general elections.
The caretaker government is close to putting the loss-making airline up for sale after completing a restructuring plan. In deep economic crisis, Pakistan agreed in June to overhaul loss-making state firms under a deal with the IMF for a $3bn bailout.
The outgoing government of Prime Minister Shehbaz Sharif decided to privatise the airline just weeks after signing the IMF agreement.
The caretaker administration, which took office in August to oversee the February 8 election, was empowered by the outgoing parliament to take any steps needed to meet the budgetary targets agreed with the IMF.
The letter from the election panel sought documents related to the Pakistan International Airlines deal to review them.
“The caretaker government should refrain from taking any further steps including signing of an agreement in this regard till a decision is made by this commission,” the letter states.
The airline had liabilities of 785-billion Pakistani rupees ($2.8bn) and accumulated losses of 713-billion rupees by June last year. Its CEO has said losses in 2023 were likely to be 112-billion rupees.
Progress on privatisation will be a key issue if the new government goes back to the IMF once the current bailout programme expires in March, analysts say.
Reuters
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