Pakistan compares failed PIA privatization bid to Air India, saying it sold on fifth attempt

Pakistan’s national carrier PIA is pictured at Islamabad International Airport in Islamabad, Pakistan, on May 31, 2020. (@Official_PIA/File)
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Updated 18 November 2024
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Pakistan compares failed PIA privatization bid to Air India, saying it sold on fifth attempt

  • It took PM Narendra Modi administration more than four years to find a buyer for Air India in 2021
  • PIA sale hit a snag last month when final bidding round attracted just one bid of $36 million 

ISLAMABAD: Pakistan’s privatization chief Abdul Aleem Khan on Monday defended a recent failed bid to sell loss-making national carrier, Pakistan International Airlines by comparing it to Air India, which was sold after multiple attempts.

Cash-strapped Pakistan was looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program approved in September. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.

PIA’s existing liabilities stand at approximately Rs250 billion ($896 million).

“Khan compared PIA’s situation to Air India, which had undergone multiple failed privatization attempts before ultimately succeeding on its fifth attempt,” the privatization ministry said in a statement, quoting Khan’s remarks at a meeting of the Senate Standing Committee on Privatization on Monday. 

“Khan expressed hope that Pakistan’s national airline could follow a similar path but underscored the need for thorough reforms.”

It took Prime Minister Narendra Modi’s administration more than four years to find a buyer for Air India in 2021. For a decade before that, the Indian government had spent about $15 billion of taxpayer money on the airline, famous for its Maharaja mascot.

The Pakistan government had pre-qualified six groups for PIA’s privatization process in June, but only real-estate development company Blue World City participated in the bidding process in October, placing a bid that was below the government-set minimum price of Rs85 billion ($304 million). 

The disposal of PIA is a step former governments have steered away from, as it has been highly unpopular given the number of layoffs that would likely result from it.

Other concerns raised by potential bidders for the PIA stake included inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.

Khan also highlighted hurdles in the privatization process during Monday’s meeting, saying it would require a “fresh approach and big-hearted decisions.”

“The first consultant engaged for the task was deemed unsatisfactory, and a new consultant would be hired to help move the process forward,” Khan told the committee, adding that privatization could only take place if PIA’s financial and operational situation was “clean and attractive to potential buyers.”

“We need to ensure that PIA is clean and profitable before privatization can proceed. Without addressing these fundamental issues, investors will not show interest,” Khan said.

Losses running into billions of dollars in the power and gas sector, the main hole in the economy, were also discussed.

“The privatization process for the first three Discos [power distribution companies] is expected to be completed by January 31, 2025,” the statement said, with Khan acknowledging that privatizing Discos would be even more challenging than PIA.


PM Sharif reassures moral, political support to Kashmiris on Accession to Pakistan Day

Updated 19 July 2025
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PM Sharif reassures moral, political support to Kashmiris on Accession to Pakistan Day

  • Muslim-majority Himalayan region has been a flashpoint between arch-rivals Pakistan and India since independence in 1947
  • Both countries engaged in a four-day military conflict in May over an attack in the region that India blamed on Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday reassured Pakistan’s continued diplomatic, moral and political support to Kashmiris for the achievement of their right to self-determination, Sharif’s office said, as the Kashmiri people marked ‘Accession to Pakistan Day.’

The Muslim-majority Himalayan region of Kashmir has been divided between Pakistan and India since their independence from British rule in 1947. Both countries rule parts of the Himalayan territory but claim it in full and have fought multiple wars over the disputed region.

The Accession to Pakistan Day is annually observed to commemorate unanimous adoption of a resolution on July 19, 1947 by All Jammu and Kashmir Muslim Conference in Srinagar, which called for Kashmir’s accession in view of aspirations of the Kashmiri people and their religious, geographical, cultural and economic proximity to Pakistan.

“On that day, the brave people of Kashmir passed a resolution for the accession of the state of Jammu and Kashmir to Pakistan,” Sharif said a statement issued from his office.

“A peaceful resolution of the Kashmir issue in accordance with the UN Security Council resolutions is the only guarantee of the rights of the Kashmiris and peace in the region. The government and people of Pakistan will continue to extend diplomatic, moral and political support to the Kashmiris.”

Most Kashmiris in the world observe the day to renew their pledge to complete the merger. In Azad Kashmir, wide-scale programs are organized to highlight the Kashmiri struggle and to demand their right to self-determination under UN resolutions.

This year, the Accession to Pakistan Day is being observed at a time of heightened tensions between Pakistan and India over an attack in Indian-administered Kashmir in April.

New Delhi blamed the assault, which killed 26 people, on Pakistan, an allegation denied by Islamabad. The attacked sparked four days of hostilities between the neighbors, with both sides attacking each other with jets, drones, missiles and artillery before agreeing to a United States-brokered ceasefire on May 10.

The conflict, the deadly between the neighbors in more than two decades, killed dozens of people on both sides.


Taste of exile: Beloved Afghan street food disappears from Pakistani cities amid deportation drive

Updated 19 July 2025
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Taste of exile: Beloved Afghan street food disappears from Pakistani cities amid deportation drive

  • Vendors, recipes and memories vanish as nearly a million Afghans forced to leave Pakistan
  • In Islamabad and Karachi, Pakistani customers say flavor are fading and so is a shared culture

ISLAMABAD/KARACHI: In a bustling corner of Islamabad’s F-10 Markaz, the scent of sizzling oil and green chili chutney once signaled the presence of Afghan street food.

Today, the aroma is gone and so are the stalls that created it — the hum of grills and laughter and life.

“There used to be a few [Afghan fries stalls] around my neighborhood and then one morning, they just upped and left,” said Hamza Nofil, 28, who used to daily have the crinkle-cut, ridged, and golden chips, always served with the signature green chutney.

“So, you know, it breaks my heart.”

This combination of photos shows two Afghan-run food stalls in Islamabad. (AN Photo)

The heartbreak is shared by many in Pakistan’s urban centers where those fries, and the people who served them, were part of a larger story — of exile, adaptation and community — that is now vanishing as a result of a sweeping deportation drive targeting Afghan nationals.

Since November 2023, Pakistan has expelled nearly one million Afghans as part of a crackdown on undocumented foreigners. The government has also not renewed Proof of Registration (PoR) cards for 1.4 million Afghan refugees, allowing their legal stay to lapse in June 2024.

While the policy has drawn criticism from rights groups and international powers, it is the quieter losses, of flavor, memory, and a sense of belonging, that now echo through city markets and street corners.

Among the casualties are the street food stalls, modest, smoky kitchens on wheels, where generations of Afghan refugees introduced Pakistanis to flavors from across the border: the fries dunked in secret chutney, paratha-wrapped burgers and mounds of Kabuli Pulao rice heaped with raisins, nuts and slow-cooked beef.

Shahid Ali, 22, a Pakistani vendor in F-10, said he remembered when there were six or seven Afghan fries stalls in the area, as well as those selling Afghan burgers wraps packed with shredded chicken or kebab, slathered with sauces and served in paratha.

“You won’t see any Afghans around here because the government sent them back to Afghanistan,” Ali said.

As Afghan families depart, Pakistani vendors have tried to mimic the recipes but something vital has been lost.

“We are missing them [Afghan food stalls],” said Iqra, 29, a banker who only gave her first name. “I will definitely miss them, especially their green chutney. I loved that.”

“A WORLD IS GOING”

In Karachi’s Al-Asif Square, nicknamed “Small Kabul” for its long-settled Afghan community, the losses are not just culinary. They are existential.

“The craftsmen are going, the shopkeepers are leaving,” said Sayed Abdul Wali, a 27-year-old shopkeeper. “A world is going to Afghanistan.”

This combination of photos shows Afghan dresses in Karachi. (AN Photo)

Abdul Kabir, a Pakistani who sells traditional Afghan naan flatbreads, said demand had plummeted.

“Where once three sacks of flour would be used, now we only use one,” he said. “Even the morning batch is still lying here.”

Anthropologist Saeed Husain warned of cultural erasure, saying more than flavor was being lost. He described Afghan food culture as a form of lived knowledge, passed down from generation to generation, evolving with each retelling.

“All these traditions will be lost,” Husain said. “And then we’ll just have copies, really cheap copies… all of that will be lost too now.”

Afghans began arriving in Pakistan in large numbers after the Soviet invasion of 1979, with successive waves fleeing war, drought, and political instability. In urban Pakistan, cities like Karachi and Islamabad, they became traders, laborers, mechanics, and cooks, helping build the very urban fabric from which they are now being erased.

This combination of photos shows populare Afghan Boti (left) and Kabuli Pulao (right) in Karachi. (AN Photo)

“Pakistan is a country founded in 1947 and made by refugees,” said Dr. Sanaa Alimia, author of Refugee Cities: How Afghans Changed Urban Pakistan.

The professor said Afghans were deeply woven into the economic and cultural fabric of urban centers and played a foundational role in shaping the cities of Pakistan, building homes, laying roads, running businesses — and serving food.

“There are many examples, from agricultural production and farming techniques, to mechanics, to doctors… artists, tandoor wallas, and so much more,” Dr. Alimai said.

But she cautioned against reducing the worth of Afghans to their economic value.

“Human and political rights are about protecting and valuing people irrespective of if they contribute to the economy or not.”

Back in Karachi, Mohsin, a local customer, feared not just the loss of food but of taste, tradition, and togetherness.

“If our Afghan brothers leave,” he said, “then perhaps the taste and flavor will leave too.”


Pakistan again extends airspace ban on Indian aircraft till August 24

Updated 19 July 2025
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Pakistan again extends airspace ban on Indian aircraft till August 24

  • The restriction was first imposed in Apr. as part of tit-for-tat measures by India and Pakistan after an attack in disputed Kashmir
  • The attack, which India blamed on Pakistan without offering evidence, led to a four-day military conflict between the two countries in May

KARACHI: Pakistan has extended for the third time its airspace ban on Indian aircraft until August 24, the Pakistan Airports Authority (PAA) said late Friday, amid continued tensions between the two countries.

The restriction was first imposed on Apr. 24 as part of a series of tit-for-tat measures announced by both India and Pakistan, days after an attack in Indian-administered Kashmir.

India blamed Pakistan for the assault that killed 26 tourists, Islamabad denied the allegation and called for a credible international probe into the incident. Both countries later engaged in a four-day military conflict in May.

“All aircraft operated by Indian airlines will not be able to use Pakistani airspace,” the PAA said in a statement. “The ban will remain in effect until 4:59am on August 24, Pakistan time.”

The authority said Indian-owned or -leased military and civil aircraft will also not be allowed into Pakistani airspace.

Pakistan previously extended the one-month restriction in May and June.

The restriction has forced Indian airlines to reroute their flights, resulting in increased fuel consumption, longer travel times and higher operational costs.

Air India, which operates numerous flights to Europe and North America, estimated in May that the airspace ban could lead to approximately $600 million in additional expenses over the course of a year and requested compensation from the Indian government.


Traders in Pakistan’s commercial capital strike over new ‘anti-business’ tax measures

Updated 57 min 2 sec ago
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Traders in Pakistan’s commercial capital strike over new ‘anti-business’ tax measures

  • Traders demand rollback of FBR arrest powers, limits on large cash transactions and e-invoicing
  • Karachi Chamber leads the strike, the federal trade body withdraws after talks with government

KARACHI: Businesses in Pakistan’s commercial capital of Karachi are observing a strike today, Saturday, to protest tax provisions in the country’s new Finance Act, as a growing number of trade bodies express frustration over what they say are “anti-business” measures that threaten to paralyze economic activity.

The Karachi Chamber of Commerce and Industry (KCCI), which spearheaded the strike call, said dozens of major trade and market associations from across the city had endorsed the shutdown, including those representing restaurants, motorcycle spare parts, iron and steel merchants and packaging manufacturers.

“All of Karachi will be closed,” KCCI President Muhammad Jawed Bilwani said at a news conference on Friday after an emergency meeting with market leaders.

“This is just a one-day strike for now,” he added. “But if we do not get written assurances before the next meeting, we will escalate, striking once a week, twice a week or even for entire weeks.”

Bilwani said KCCI had already conveyed its concerns to Prime Minister Shehbaz Sharif and called on the government to roll back provisions that authorize the Federal Board of Revenue (FBR) to arrest traders, impose penalties on cash transactions above Rs200,000, and enforce mandatory digital invoicing for goods transport.

“We are the ones who keep the economy running,” he said. “If our issues are not resolved, there will be no industry left in this country and we will take our businesses to Dubai.”

Saturday’s strike follows a previous warning issued by the chamber earlier this week, when it said over 50 trade associations across Pakistan had endorsed the protest. It also described the level of support as unprecedented in the country’s history.

Despite the broad show of unity in Karachi, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country’s top business body, said on Friday it had postponed its own plans to participate in the strike after what it described as successful talks with the government.

“FPCCI President Atif Ikram Sheikh has announced the July 19 strike has been deferred following positive engagement with the government,” a statement from the federation said.

The split reflects a growing divide within the business community, with some factions seeking negotiation while others escalate their protest campaign.

Traders and transporters say the new tax provisions will burden already-struggling businesses and increase harassment by tax officials, especially in cities like Karachi, where law and order challenges, inflation and declining purchasing power have hurt commercial activity.

The KCCI has insisted that only written guarantees from the government will convince traders to call off the broader strike campaign.

Until then, Bilwani said, the protest will continue.


Pakistan, US hold new round of trade talks amid tariff tensions, eye wider cooperation

Updated 18 July 2025
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Pakistan, US hold new round of trade talks amid tariff tensions, eye wider cooperation

  • Pakistan’s finance chief, US officials discuss trade in traditional and non-traditional sectors
  • Finance ministry says both sides optimistic ongoing trade talks will yield positive outcomes

KARACHI: Pakistan and the United States explored ways to broaden their trade partnership beyond textiles, a statement released in Islamabad said on Friday, as their officials held high-level talks in Washington to finalize a trade deal and address recently imposed US tariffs.

The meeting between Pakistan’s Finance Minister Muhammad Aurangzeb, US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer followed a virtual discussion between Aurangzeb and Lutnick last month, during which both sides agreed to push negotiations forward “at the earliest.”

The talks come after the US imposed a 29 percent “reciprocal tariff” on Pakistani exports under President Donald Trump’s trade measures announced in April, a move Islamabad said could undercut its fragile, export-led recovery.

“Finance Minister Aurangzeb emphasized that the US remains Pakistan’s largest trading partner and underscored Pakistan’s interest in expanding cooperation in both traditional and non-traditional sectors, including the IT & tech sector, minerals and agriculture, to foster a mutually beneficial relationship,” Pakistan’s finance ministry said in a statement.

It added officials from both countries were pleased with the progress made so far in deepening trade and economic relations, which they described as a key pillar of the broader Pakistan-US partnership.

They reaffirmed their shared commitment to finding new ways to strengthen cooperation across all areas where both countries stand to benefit.

Nearly 90 percent of Pakistan’s exports to the US are textiles, a sector that is most vulnerable to the duties.

The US is Pakistan’s top export destination, with shipments totaling $5.44 billion in FY2024. From July 2024 to February 2025, exports rose 10 percent compared to the same period a year earlier.

Pakistan is also seeking to diversify its trade destinations and export base to mitigate risks related to its international trade.

“Both parties expressed optimism that ongoing trade talks would yield positive outcomes, benefiting the economies of both countries,” the ministry said in its statement.