October Target Set for PIA Privatization and Growth

Federal Minister for Defense Khawaja Asif stated that the Pakistan International Airlines (PIA) privatization process is expected to be finalized by the end of October 2024. He noted that flights between Hyderabad and Karachi are not commercially sustainable for the national carrier.

Addressing the National Assembly, Asif, who also oversees Defense Production and Aviation, responded to a calling attention notice regarding the closure of Hyderabad Airport. He mentioned that the PIA has accumulated Rs800 billion in loans. In response to a question from Khawaja Izharul Hasan, the minister indicated that the government would permit private airlines to operate flights if they express interest.

In a written reply, Minister for Economic Affairs Ahad Khan Cheema informed the House that from July 2018 to June 2023, the government secured foreign loans, excluding those from the IMF, amounting to $57.272 billion. Of this, $9.819 billion was allocated for project financing. Additionally, the government paid $3.904 billion in interest/mark-up on these foreign loans, with $889 million attributed to project loans.

Cheema further clarified that domestic loans were primarily raised through auctions of government securities or the Central Directorate of National Savings. These funds were used mainly for deficit financing and maintaining a cash buffer, with no project financing conducted through domestic debt operations.

Federal Minister for Education and Professional Training Dr. Khalid Maqbool Siddiqui announced the allocation of 20 Pink Buses in Islamabad, offering free pick-and-drop services to female students, working women, and teachers. This initiative aims to reduce the dropout rates of girl students. Currently, 311 buses are operational for student transport in the federal capital.

Minister for Commerce Jam Kamal Khan highlighted a significant rise in fruit exports, which increased from $280 million in FY 2022-2023 to $333 million in FY 2023-2024, marking an 18.9% growth. He also emphasized ongoing mango promotion campaigns and business-to-business (B2B) sessions organized by the Trade Development Authority of Pakistan (TDAP) to boost exports. The recent International Food and Agriculture Exhibition in Karachi saw the participation of numerous fruit companies and over 120 international delegates.

Minister for Finance and Revenue Muhammad Aurangzeb reported that Rs172 billion in advance tax had been collected from mobile phones over the past two years, with Rs92 billion collected in 2024 and Rs80 billion in 2023.