It is very good news that, Pakistan international airline is now its selling business unit to its former mother institution PAF(Pakistan air force) that had formed PIA, under the great leadership of ex-air chief marshal Noor khan back in 60, as we knows that Malik Noor Khan was PIA’s chairman from 1968 to 1974. His success in establishing PIA on a firm and profitable financial basis in six years is now a fact of airline history.
Under his charismatic and inspirational leadership, PIA became one of the leading and respected airlines of the world and adopt the moto “bakamal log lajawab service “means great people to fly with. Its past was very great but since 1990, its fallback has started and now with corruptions and other miss handling that big titan is nearly sinking and no investor is ready to buy it or get a single share of it. Therefore according to the newspapers stories, now the government decided to its selling business to PAF.
These news are circulating in the main stream media that government has decided to sell a business unit of Pakistan International Airlines (PIA) to the Pakistan Air Force for Rs2.5 billion in cash, which is equal to one-fourth of the price that a sole bidder offered for acquiring 60% shares in the national flag carrier.
The total sales value of Precession Engineering Complex (PEC) is Rs6.5 billion, including Rs4 billion in pensions-related liabilities of its current and retired employees, a senior government official told The Express Tribune. PEC is a business unit of PIA that manufactures high-precision parts for the aerospace industry and a number of other industries.
Government sources said that a ministerial committee had already approved the transfer of PEC to PAF at a total price of Rs6.5 billion. A formal summary is now being moved for approval of the federal cabinet, they added.
As of the end of December last year, PEC’s total assets were valued at Rs1.2 billion whereas its total liabilities were estimated at Rs2.9 billion. It had a net negative equity of Rs1.73 billion at the time of determining its sale price.
PAF will acquire PEC at a total price of Rs6.5 billion, the official said. PAF will pay Rs2.5 billion in cash within five years and will also assume Rs3 billion in liabilities of pensions and provident fund of the already retired 259 employees of PEC for the next 10 years.
In these circumstances when no foreign or local company is not ready to purchase its shares because they knows that the ship is sinking and its operations are not meets its goals, the national flag holder institution’s (PIA) income is stop or its facing big financial losses in all measures. So the siting government and establishment decided to solve that years lasting problem by selling it business sector to one of the successful government owned institution (PAF) who has not only the experience to form the PIA, but also has the experience to give technical assistance to the gulf countries in the aviation.
Although it’s not valid to down every government running institution to forces but if the professional assistance is concern, in the above bad situation PAF is best available choice because it knows all the if’s and buts of financially failed institution. If the government of Pakistan has succeeded in doing that deal it will pave the way for more reforms in the PIA, for its batter future. So it’s hoped that government will pay all his attention to the rehabilitate of the institution rather than it’s out sourcing and privatization, because it’s not impossible to reinstate that dynamic international airline yet again.it has the potential to rebuild its trust amongst the travelers and it could also win its national pride once again.
