Pakistan’s financial collapse has reached a brand new low. The nation is being compelled to promote its nationwide airline, Pakistan Worldwide Airways (PIA), simply to maintain IMF cash flowing.
The Desperation
Prime Minister Shehbaz Sharif introduced that PIA’s bidding will happen on December 23, broadcast stay throughout all media platforms. This is not Pakistan’s first try. They tried promoting PIA final yr however cancelled after receiving ZERO good affords. No person needed Pakistan’s loss-making catastrophe of an airline. Now, with the IMF respiratory down their necks, they haven’t any alternative however to attempt once more.
The IMF Gun To Pakistan’s Head
The sale of 51-100% of PIA is a compulsory situation for Pakistan’s USD 7 billion IMF bailout bundle permitted in September 2024. Whereas USD 1 billion was launched instantly, the remaining funds depend upon Pakistan finishing this privatization.
With out this sale, the cash stops. With out IMF cash, Pakistan’s economic system would collapse utterly.
Guess Who’s Shopping for? The Military, Of Course
4 bidders have been pre-qualified: Fortunate Cement Consortium, Arif Habib Company Consortium, Fauji Fertiliser Firm Restricted, and Air Blue Restricted.
This is the place it will get attention-grabbing. Fauji Fertiliser belongs to the Fauji Basis, certainly one of Pakistan’s largest enterprise empires managed by the army.
Military Chief Asim Munir, Pakistan’s strongest man, is not immediately on the Basis’s board. However he does not should be. Munir appoints the Quartermaster Basic, who sits on the board, giving him full oblique management over the Basis’s operations.
The Army Takeover Continues
Pakistan’s army already controls a lot of the economic system, and now the nationwide airline is subsequent. Because the nation sells property, they’re prepared to purchase it cheaply.
Sharif says the method will probably be “truthful and clear” and restore PIA’s “misplaced status.” Misplaced status? PIA has lengthy been banned from Europe over pretend pilot licenses. Respect died years in the past.
IMF Mortgage To Pakistan
The IMF permitted a USD 7-billion mortgage programme for Pakistan in September 2024. Whereas USD 1 billion was launched instantly, the remaining funds are scheduled to be disbursed over three years.