Cabinet Committee give green signal to PIA for restructuring

Lahore : The Cabinet Committee on Privatization , which met here at the PM Office on Friday with Prime Minister Shahid Khaqan Abbasi in chair, gave go-head to the proposal for initiating restructuring process in Pakistan International Airlines Corporation Limited (PIACL).

The go-ahead was given after a detailed presentation on PIACL and the discussion that followed in the meeting that discussed issues related to PIACL and Pakistan Steel Mills (PSMC).

It was decided during the meeting to segregate core and non-core functions of the organization.

Minister for Privatization Daniyal Aziz gave a detailed presentation on various issues including the financial challenges faced by the two organizations and possible way forward for addressing those issues on permanent basis.

The Prime Minister in his remarks observed that past mismanagement and neglect of the two important organizations had not only resulted in creation of huge financial liability, on annual basis, for the government but also caused great difficulties for the employees of the organizations.

The meeting discussed in detail various administrative, financial and employees related issues of Pakistan Steel Mills. A proposal for PSMC entering into a ‘concession’ agreement with investors, on revenue sharing basis, also came under discussion.

The Prime Minister directed that all options should be explored and a comprehensive plan should also be worked out for addressing the employees-related issues.