Pakistan says bidding process for PIA auction delayed by 30 days

View of the Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. (REUTERS/File)
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Updated 30 September 2024
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Pakistan says bidding process for PIA auction delayed by 30 days

  • The Pakistani government last week delayed the auction of the national flag carrier for the third time
  • Successive governments have steered away from the PIA’s disposal as it is likely to be highly unpopular

ISLAMABAD: The bidding process for auction of the Pakistan International Airlines (PIA) has been delayed by 30 days, Pakistan’s Deputy Prime Minister Ishaq Dar said on Monday, as potential bidders seek more time and information to assess the airline.
The Pakistani government last week delayed the auction of the national flag carrier for the third time. Successive governments have steered away from the PIA’s disposal as it is likely to be highly unpopular, but progress on privatization is a precondition for cash-strapped Pakistan for an International Monetary Fund (IMF) bailout approved last week.
Pakistan plans to sell more than 51 percent of its stake in the loss-making airline as part of the economic reforms suggested by the IMF which approved a long-awaited, 37-month $7 billion bailout deal on Wednesday that will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”
Speaking on ARY News show ‘Khabar,’ Dar said all the bidders, who showed interest in buying the airline, had requested the government for more time through a transaction adviser handling the PIA’s auction.
“He [transaction adviser] approached the government last week, that was the last day to sign off the preconditions, so that bid bond could be submitted the next day... so he said all, barring one, are saying that ‘we need more time’,” said Dar, who also heads the cabinet committee on privatization.
“God willing,” the deputy PM replied, when the anchor specifically asked if these were the final 30 days.
The Pakistani government announced in June it had selected six companies qualified to bid for PIA out of a pool of eight after receiving expressions of interest. The initial plan was to finalize the deal to sell PIA on the country’s Independence Day, Aug. 14, but the plan was delayed following requests from bidders who were waiting for the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
This was followed by September and October dates for the auction, but those have also not materialized.
Dr. Ahsan Ishaq, a spokesperson for privatization ministry, last week told Arab News that the PIA’s cumulative losses alone had surpassed Rs800 billion ($2.86 billion), with the total asset valuation of the airline standing at approximately Rs160 billion ($572 million).
In August, the country’s central bank refused to grant a waiver or exemption to prospective buyers regarding PIA’s commercial bank loans of Rs268 billion ($971.1 million) and other financial guarantees in dollar terms, a development viewed as a setback to the privatization bid.
With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s and 5 ATRs, the airline loses traffic to Middle Eastern carriers, who have a market share of 60 percent, because of an absence of direct flights to destinations. The carrier has air service pacts with 87 countries, and landing slots at key destinations such as London Heathrow.
The re-organization plan of the business will separate the aviation-related aspects from non-core components, so freeing the operating subsidiary of a large portion of legacy debt.


Pakistani forces kill 11 militants in restive northwest amid surge in attacks

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Pakistani forces kill 11 militants in restive northwest amid surge in attacks

  • The militants were killed in separate engagements in Tank, North Waziristan and Mohmand districts of the Khyber Pakhtunkhwa province
  • Pakistan has blamed a surge in militancy in Khyber Pakhtunkhwa on militants operating out of Afghanistan, Kabul denies the allegation

ISLAMABAD: Pakistani security forces have killed 11 militants in separate operations in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Wednesday, amid a surge in attacks in the region.

Seven militants were killed during an exchange of fire in an intelligence-based operation (IBO) in KP’s Tank district, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

Two militants were killed in an encounter in North Waziristan district, while a third operation in Mohmand district killed two more militants, following an intense exchange of fire.

“Weapons and ammunition were also recovered from killed khwarij [militants], who remained actively involved in numerous terrorist activities against the security forces as well as innocent civilians,” the ISPR said in a statement late Wednesday.

“Sanitization operations are being carried out to eliminate any other Kharji found in the area.”

Pakistan’s Khyber Pakhtunkhwa, which borders Afghanistan, has witnessed a number of attacks by the Tehreek-e-Taliban Pakistan (TTP) and other militant groups that targeted security forces convoys and check posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.

Earlier this month, six Pakistani soldiers and 22 militants were killed in three separate gunfights in Tank, North Waziristan and Kurram districts of KP, according to the military.

Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting militant groups, urging the Taliban administration in Kabul to prevent its territory from being used by armed factions to launch cross-border attacks.

Afghan officials, however, deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.


In ‘hope’ ambulances with women drivers in Pakistan’s Sanghar district

Updated 12 min 4 sec ago
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In ‘hope’ ambulances with women drivers in Pakistan’s Sanghar district

  • Sindh Integrated Emergency & Health Services employed the province’s first two women ambulance drivers in June
  • Employing women is a bold move by SIEHS in a conservative province where women are often denied the most basic rights

SANGHAR, Sindh: Irum Jatt’s hands gripped the steering wheel tightly as the ambulance she was driving zipped through the roads of the southern Pakistani city of Sanghar earlier this month, sirens blaring to warn other cars and pedestrians to move out of the way. 

While a woman driving an ambulance is no anomaly in cities like London or New York, in this remote, conservative town in Sindh province, Jatt, 21 and another colleague Shereen Shah, 22, made history in June when they were hired as the first women ambulance drivers for the Sindh Integrated Emergency & Health Services (SIEHS), a semi-governmental organization operating around 283 “HOPE” ambulances across the province. 

Established in 2021, SIEHS employs 750 Emergency Vehicle Operators (EVOs) and launched operations in Sanghar in October 2023 with three ambulances.

In conservative and patriarchal Pakistan, where the right to education, employment and even voting is sometimes not extended to women, employing female ambulance drivers was a bold move by SIEHS and one that has not even been experimented with in large urban centers of the province such as Karachi and Hyderabad. Women in Sindh in general also face many challenges such as discrimination, violence, and limited access to health, education and job opportunities.

“Many people believed that it wasn’t possible,” Jatt told Arab News in an interview as she drove on a road in main Sanghar city. 

“But there’s something within a person, a passion that drives them to do something. I felt the same, I wanted to do it, I wanted to drive an ambulance.”

Jatt, an intermediate degree graduate, saw the job opening for an ambulance driver on social media and applied, having to go through several rounds of tests before her selection. 

“On the road, it’s common for people to stare when they see a woman driving,” Jatt said. 

“Many people don’t give way. While leaving our Sanghar city, motorcyclists don’t give way, and we have to face all of that.”

Negative stereotypes and biases, including that women were bad drivers or drove slowly, also made the job harder, she said. 

“Some good people get it but there are communities that don’t understand and say things like, ‘You arrived late,’ or ‘You deliberately delayed’. Some might even think, ‘Because it was a woman driving, it took longer’.”

Mumtaz Ali Pirzada, the district manager at the SIEHS, acknowledged the initial resistance by the community to the women ambulance drivers.

“When we first inducted female drivers in Sanghar, and we did and in the future also we will do it, there was significant backlash on social media, most people asked how can a woman drive an ambulance,” he said. 

“But we have broken that stereotype. These women have broken it because they are doing all these things and doing them with a lot of hard work.”

According to Pirzada, Shah and Jatt often outperformed their male counterparts. 

“But their success isn’t due to sympathy or special treatment, it’s purely their hard work and skills,” he added. “They even handle tasks like changing tires, including the heavy tires of ambulances, which challenges the traditional mindset that only men can manage such tasks.”

Shereen Shah, another women ambulance driver from Sanghar, said the response from the community was improving. 

“When we first started working here, people were shocked to see women driving ambulances, they thought we wouldn’t be able to handle it, that we might hit something,” she told Arab News as she stood by her vehicle. 

“But now, wherever we go, if the traffic police sees us, they salute us and the Sindh police also salute us. They feel proud of us.”

She said it was “so fulfilling” to be able to rescue people from road accidents and other emergencies and deliver them to medical facilities in a timely manner. 

“A few years ago, women rarely stepped out of their homes in this city,” she said. “But today, women are driving vehicles here and that’s a matter of pride for Sanghar.”


UN adopts Pakistan-sponsored resolution on self-determination, highlighting Palestinian plight

Updated 41 min 1 sec ago
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UN adopts Pakistan-sponsored resolution on self-determination, highlighting Palestinian plight

  • Pakistan has annually tabled the resolution for over four decades to highlight the struggles of oppressed people
  • The resolution addresses the situation in Indian-administered Kashmir, challenges colonial and foreign occupation

ISLAMABAD: The United Nations General Assembly unanimously adopted a Pakistan-sponsored resolution reaffirming the universal right to self-determination, said the foreign office on Wednesday, with a focus on people living under foreign occupation, including in Palestine and Indian-administered Kashmir.

Pakistan has annually tabled this resolution for over four decades to highlight the struggles of people denied self-determination under colonial domination or foreign subjugation.

“The unanimous adoption of this resolution reflects the collective will of UN member states and strengthens the principle of self-determination, as enshrined in international law, including the UN Charter and the International Covenants on Civil and Political Rights, and Economic, Social and Cultural Rights,” the foreign office said.

“The resolution highlights the plight of people in Indian Illegally Occupied Jammu and Kashmir and Palestine, reinforcing international support for their legitimate aspirations for self-determination,” it added.

Adopted by consensus, the resolution was supported and co-sponsored by a large number of countries from different regions around the world.

It underscores the inalienable right of all peoples to self-determination as essential for advancing human rights globally, sending a message of solidarity to populations struggling against foreign occupation, while calling for an end to intervention and aggression.

The foreign office said the adoption of the resolution demonstrated Pakistan’s leadership in advocating for the rights of oppressed peoples and maintaining the principle of self-determination as a cornerstone of international justice and peace.


Islamabad decries ‘double standards’ as US imposes more sanctions on Pakistan missile program

Updated 9 min 56 sec ago
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Islamabad decries ‘double standards’ as US imposes more sanctions on Pakistan missile program

  • The State Department says the measures target ‘proliferators of weapons of mass destruction and their means of delivery’
  • Islamabad says the latest sanctions defy the ‘objective of peace and security by aiming to accentuate military asymmetries’

ISLAMABAD: Pakistan’s foreign ministry on Thursday criticized the United States (US) for imposing more sanctions on the South Asian country’s missile program, saying it reflected “double standards and discriminatory practices.”

The statement came hours after US said it was imposing new sanctions related to nuclear-armed Pakistan’s long-range ballistic-missile program, including on the state-owned defense agency that oversees the program. The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them.

State Department spokesperson Matthew Miller said in a statement that the measures slapped on the National Development Complex and three firms were imposed under an executive order that “targets proliferators of weapons of mass destruction and their means of delivery.”

In its reaction to the development, the Pakistani foreign ministry said the US decision was “unfortunate and biased” and that Pakistan’s strategic capabilities were meant to defend its sovereignty and preserve peace and stability in South Asia, regretting the imposition of sanctions on private commercial entities too.

“Similar listings of commercial entities in the past were based on mere doubts and suspicion without any evidence whatsoever. While claiming strict adherence to non-proliferation norms, licensing requirement for advanced military technology to other countries have been waived off in the past,” it said in a statement.

“Such double standards and discriminatory practices not only undermine the credibility of non-proliferation regimes but also endanger regional and international peace and security.”

A State Department factsheet said the Islamabad-based NDC had sought to obtain components for the country’s long-range ballistic-missile program and missile-testing equipment. It said the NDC “is responsible for the development of Pakistan’s ballistic missiles,” including the Shaheen family of missiles.

The Bulletin of the Atomic Scientists research organization says the Shaheen series of missiles is nuclear-capable. Pakistan conducted its first nuclear-weapons test in 1998, becoming the seventh country to do so. The Bulletin estimates Pakistan’s arsenal at about 170 warheads.

Islamabad has refused to sign the Non-Proliferation Treaty, the cornerstone of the international system designed to prevent the spread of nuclear weapons.

The other entities slapped with sanctions were Affiliates International, Akhtar and Sons Private Limited and Rockside Enterprise, all located in Karachi, the factsheet said. It said the companies worked with the NDC to acquire equipment.

“The United States will continue to act against proliferation and associated procurement activities of concern,” Miller said.

The Pakistani foreign ministry said the latest installment of sanctions defied the “objective of peace and security by aiming to accentuate military asymmetries,” an apparent reference to Pakistan’s rivalry with nuclear-armed India.

“Such policies have dangerous implications for strategic stability of our region and beyond,” it said.


Pakistan completes survey of special economic zones to attract Chinese industries, foreign investment

Updated 19 December 2024
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Pakistan completes survey of special economic zones to attract Chinese industries, foreign investment

  • The survey included aerial assessments to identify resources and challenges of SEZs across the country
  • The government plans to adopt environmentally sustainable practices to run these industrial zones

ISLAMABAD: Pakistan has completed a survey of Special Economic Zones (SEZs) as part of efforts to facilitate the relocation of Chinese firms and make these zones suitable for international businesses, Federal Minister for Investment Abdul Aleem Khan said on Wednesday.
The government aims to attract foreign investment from friendly nations, including China and Gulf countries, and established the Special Investment Facilitation Council (SIFC), a hybrid civil-military body, last year to eliminate bureaucratic hurdles and provide a one-window operation for foreign businesses.
The survey, which included aerial assessments using drone technology, identified the resources and challenges of SEZs across the country.
“These zones will incorporate special measures to facilitate the relocation of Chinese industries,” the investment minister was quoted as saying in an official statement, though he added the country would also welcome investments from other countries.
Officials in Islamabad and Beijing launched the multibillion-dollar China-Pakistan Economic Corridor (CPEC), which initially focused on energy and infrastructure projects but now plans to transition into the next phase with an aim to boost industrial production and exports.
Earlier this year, Prime Minister Shehbaz Sharif undertook a five-day visit to China, where he met representatives of leading Chinese businesses and urged them to invest in Pakistan and relocate their operations to SEZs.
The development came as Pakistan recovers from a prolonged economic crisis with external financing, while the government acknowledges the need to enhance industrial and agricultural output and exports through increased international investment.
Khan directed Pakistani embassies to engage foreign investors actively and asked relevant officials to establish a “Pride of Pakistan” group for key international stakeholders.
He said the government aimed to introduce about 150 reforms to enhance SEZ operations and improve their overall efficiency.
The steps would include environmentally sustainable practices under the “Green Pakistan Investment” model, focusing on eco-friendly infrastructure, renewable energy and sustainability measures to attract global investors.
Specific zones, such as Karachi’s industrial hub, will be linked to Port Qasim with enhanced infrastructure and facilities.
The minister and other officials also discussed the construction of a business facilitation center in a meeting and reviewed the “Ease of Doing Business Act 2024,” which aims to streamline investment processes further.