A constitution bench of the Sindh High Court has directed the federal law officer to state whether the privatization of Pakistan International Airlines (PIA) has been challenged in the Supreme Court or not.
The directive was issued on petitions against the proposed privatization of PIA. A three-member bench of the Sindh High Court, headed by Justice Muhammad Karim Khan Agha, directed the federal law officer to inform the High Court whether the issue of privatization of PIA has been challenged in the Supreme Court or not and to hear the case. Adjourned till January 21.
One of the petitioners, Samira Mohammadi, said she wanted to amend the petition. The bench directed the petitioner to file the petition in the court office. The PIA Employees Union and other citizens had said in the petitions that the federal government was taking steps to privatize PIA and amendments were made to the PIA (Conversion) Act, 2016 for this purpose.
The petitioners had contended that the PIA Act was amended in 2023 to allow for illegal cancellation of shares and fresh issue of shares without the requirement of law, in violation of which a private company is PIA-friendly. Occupancy will be allowed. Article 18(c) of the Constitution.
The Sindh High Court was told that the monopoly business of the Government of Pakistan will be handed over to a private party with the best technical workers, pilots, engineers and other technical staff.
He was of the view that PIA is a public institution and cannot be sold by the government. He said that there is a possibility that PIA will be handed over to a foreign agency and the matter will be outside the jurisdiction of the court and will come under the ambit of international courts.
The petitioners were of the view that the national security of the country will be severely damaged if the issues of PIA, which is a strategic asset, are discussed in foreign courts. The High Court was urged to declare the proposed privatization of PIA as illegal in terms of sale of shares and management control of the airline.
Earlier, the Privatization Commission informed the High Court that the proposed privatization of PIA was in the public interest, instead of winding up PIA’s business, it should be privatized.
The Privatization Commission had taken the stand that the federal cabinet had approved the privatization of PIA on August 7, 2023, besides the government of Pakistan had not taken any decision regarding cancellation of PIA shares or issuance of right shares.
The commission’s deputy director submitted that PIA had said on September 15, 2023 that it was facing a shortfall of Rs 12.77 billion per month and other additional losses of Rs 713 billion as per its June 2023 financial statement. is facing There was a huge burden on the public exchequer to arrange the funds and the government was unable to sustain further losses and provide funds. Billions to PIA now.
The approval of the financial framework for the privatization of PIA is in the pipeline, while the scheme for capping and privatizing PIA as well as its subsidiary regulatory arrangements has been approved and will be issued with securities, the official said. and will be filed with the Exchange Commission of Pakistan. .