Posted 4/7/2024, 1:24:36 AM
Privatization Seen as Potential Remedy for Beleaguered PIA's Massive Debt and Inefficiency
- PIA has accumulated massive liabilities of Rs830 billion compared to assets of just Rs171 billion, a unique and dire situation unparalleled globally
- PIA maintains an inefficiently high employee-to-aircraft ratio of 5001 compared to major airlines like Emirates (2311)
- Privatization has long been advocated as a remedy for Pakistan's state-owned enterprises (SOEs) like PIA
- Successful PIA privatization would signal government's commitment to reform and progress, boosting economic climate
- Privatization requires careful planning to select the right buyer, ensure transparency, and protect employees, but potential rewards are significant
