PM Imran gives week-long deadline to PIA CEO to submit restructuring plan

ISLAMABAD: Pakistan International Airlines (PIA) Chief Executive Arshad Malik on Friday was given a week-long deadline by Prime Minister Imran Khan to submit a restructuring plan for the national carrier and present the related framework.

Malik had called on PM Imran at the PM Office, where the premier asked him to expedite the plans and undertake the restructuring in consultation with his adviser on institutional reforms, Dr Ishrat Hussain.

The PIA boss briefed the prime minister on the ongoing negotiations with European Union Aviation Safety Agency (EASA) to ensure the PIA's flight operations continue in the continent. He also briefed the premier on the airline's restructuring plan to make it a profitable and leading company.

PM Imran emphasised that the government was pursuing an across-the-board reforms agenda to make institutions efficient and service-oriented.

Rs6 billion loss per month

In a meeting last month on the May 22 PIA plane crash, Malik had apprised PM Imran on the progress regarding the investigation, as well as the reforms and restructuring of the national airline.

The PIA chief had told the premier that in the prevailing situation, the national carrier was incurring a loss of almost Rs6 billion every month. A sum of Rs24 billion was being spent annually to pay salaries to its 14,500 employees alone, he had said.

During the meeting, a timeline for the PIA's restructuring as well as a comprehensive roadmap over reforms and their implementation had also been submitted to the prime minister.

'Cut down expenditures'

The PM noted that due to the coronavirus pandemic, Pakistan's economy was facing difficulties and that people had to bear the burden of billions of rupees worth of loss on a monthly basis suffered by the state-owned entities.

He stated that it was imperative with regard to the current situation to expedite restructuring and reforms in the PIA, which had been incurring heavy losses. He had also stressed upon slashing expenditures, focusing on enhancing its income, and upgrading the fleet.

PM Imran had also directed that special attention should be paid to the PIA-owned domestic and foreign assets, which could be utilised through a complete, transparent, and clear manner. They should create financial resources for the organisation instead of becoming a loss-making burden, he had added.