Islamabad, Apr 9 (EFE).- Pakistan’s national flag carrier has recorded an operational profit of 9.3 billion rupees ($33.48 million) for the first time in 21 years amid government’s push for its privatization, an official said Wednesday.
The Pakistani government has offered to privatize Pakistan International Airlines (PIA) and other state-owned enterprises as part of reforms sought by the International Monetary Fund (IMF) under a $7 billion bailout program.
However, a previous attempt to sell a 60 percent stake in the airline failed last year after it drew just one bid of 10 billion rupees ($36 million) which was well below the government’s expectation.
“The PIA has posted an operating profit of Rs9.3 billion and net profit of Rs26.2 billion for the year 2024,” Abdullah Hafeez, a spokesman for the airline told EFE on Wednesday.
Defense Minister Khawaja Asif, in a statement late Tuesday, confirmed the development saying the board of directors of PIA had approved the accounts for fiscal year 2024.
“People of Pakistan might have lost hope on ‘once a pride of the nation’, but with rigorous steps adopted by the GoP (government of Pakistan); implementing comprehensive reforms entailing cost and workforce rationalization, routes optimization and financial discipline with balance sheet restructuring, PIA is poised to capitalize on financial performance through privatization process,” Asif, who is also minister for aviation, said on X.
Prime minister Shehbaz Sharif, while terming it good news, said that it was a major turnaround after decades of losses.
“The skies ahead look brighter, INSHALLAH (God willing),” he wrote on X.
According to the airline’s spokesperson, the operational margin for 2024 exceeded 12 percent, a performance level that matches with top global carriers.
Currently, the PIA has over 7,100 regular employees and around 2,500 daily wagers, according Hafeez. The fleet of PIA aircraft is 33 but only 17 of them are operational at the moment.
The airline’s total loss has crossed 800 billion rupees ($2.9 billion), mainly because of more expenditures than revenue, as per the official.
PIA’s return to profitability could boost the government’s efforts to revive buyer interest. After the failed privatization process last year, the government has yet to reveal the new plan. EFE
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