PIA privatisation: Miftah blames Dar for scaring off potential buyers

PIA privatisation: Miftah blames Dar for scaring off potential buyers

ISLAMABAD: Former Finance Minister and leader of Awam Pakistan Party (AWP) Miftah Ismail said that Deputy Prime Minister Ishaq Dar’s ‘clever’ strategies drove away potential buyers interested in acquiring Pakistan International Airlines (PIA).

Speaking during ARY News programme “Sawal Yeh Hai”, Miftah Ismail highlighted the government’s lack of focus on privatisation, particularly in institutions like PIA, which has led to potential investors withdrawing their interest.

He criticised the government’s approach, stating that despite claims of reducing expenses, the budget has increased by 22 percent (pc).

According to Miftah Ismail, the government’s primary focus is merely on retaining power rather than implementing reforms, including the agricultural tax or addressing the National Finance Commission (NFC) Award.

Miftah Ismail also pointed out that a significant amount, between Rs600 to 700 billion, has been set aside for MNAs. He mentioned that recently both Sindh and Punjab governments purchased new vehicles, placing the tax burden on the poor and salaried class.

In response to a question, Miftah Ismail stated that the IMF delegation felt something was amiss, prompting their visit to Pakistan. The IMF had concerns about the lack of an agricultural tax, the absence of pension reforms, and stagnant tax policies.

He further mentioned that the IMF visited Pakistan under a precautionary approach due to fears of the agreement going off track. However, he noted that the threat of a mini-budget has been averted until December, and the IMF will assess the financial statistics closely.

Read More: CCOP vows to divest PIA through privatisation

Back on 15 Nov 2024, Cabinet Committee on Privatisation (CCOP) at its meeting reiterated government’s resolve to divest PIA through privatisation or government to government mode.

The CCOP noted with satisfaction the assessment of the aviation division on healthy PIACL’s finances.

The CCOP also constituted a committee under the convenorship of Minister of State for Finance to evaluate possible transaction options for privatisation of Roosevelt hotel and modes to be adopted in the light of available legal provisions.

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