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Country Report Pakistan Product Image

Country Report Pakistan

  • ID: 2101420
  • February 2015
  • Region: Pakistan
  • 25 Pages
  • The Economist Intelligence Unit

The Public Accounts Committee of the National Assembly (NA, the lower house of parliament) in late February rejected the plan of the cabinet office's aviation division to restructure the state-owned Pakistan International Airlines (PIA) before its privatisation.

The Public Accounts Committee did approve the aviation division's proposal for the government to assume PIA's PRs288bn (US$2.8bn) of debt, a heavy burden for the government, as it comprises around 6% of the government's total expenditure in fiscal year 2013/14 (July-June).

The committee's rejection of the government's proposed restructuring of PIA bodes ill for its planned partial privatisation. The plan calls for the division of PIA into two companies. The first would consist of passenger and cargo services, which would be privatised first, and the second would consist of its non-flight businesses, such as ground handling and catering. The government estimates that this restructuring would save the company PRs5.5bn a year but would result in around 7,000 redundancies.

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Country Report Pakistan

National Assembly avoids question of PIA job losses
Event
Analysis
Impact on the forecast

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