ISLAMABAD: The federal cabinet approved the restructuring of Pakistan International Airlines (PIA) on Tuesday, dividing the national flag carrier into two separate entities.
The decision, deemed crucial for the forthcoming political administration, was made during a meeting chaired by Caretaker Prime Minister Anwaar-ul-Haq Kakar. The restructuring plan, based on recommendations from a financial adviser, entails splitting the functions of the national flag carrier into two companies: TopCo and HoldCo.
TopCo will handle basic operations such as engineering, ground handling, flight kitchen, and training, while HoldCo will oversee the Precision Engineering Complex, PIA Investment Limited, and associated departments and properties.
Minister for Privatization Fuad Hasan Fuad, who proposed the plan, highlighted its potential to attract investors to PIA.
Furthermore, the cabinet instructed the resolution of disputes over dues to government organizations owed by PIA to expedite the restructuring process. Additionally, the Ministry of Privatization’s proposal to privatize the First Woman Bank was endorsed.
In another decision, the cabinet opted to halt government-level wheat imports due to ample reserves in the country, a move aimed at conserving foreign exchange. Noting stable flour prices alongside substantial wheat reserves, the cabinet endorsed the ECC’s decision to ban wheat imports.
The country is poised for a bumper wheat crop this season, with estimated production exceeding 32.1 million tons. Despite importing 1.376 million tons of wheat worth Rs113.13 billion in the first half of the fiscal year, domestic reserves remain robust.
The cabinet also approved the deregulation of medicine prices, except for essential medicines not listed nationally, aiming to streamline pharmaceutical pricing based on international models. The Pakistan Medical and Dental Council will oversee restrictions on prescribing certain drugs, and the Drug Regulatory Authority will collaborate with provincial governments on the matter.
Additionally, the conversion of four accountability courts in Peshawar into special courts was permitted, along with the appointment of judges in line with a proposal from the Chief Justice of the Peshawar High Court, without imposing extra financial burdens.
Moreover, Lt. General Tahir Hameed Shah’s appointment as Chairman and member of the Wah Ordinance Factories Board was approved with effect from November 29, 2023, upon the Ministry of Defence Production’s recommendation.
The federal cabinet’s decision to approve 146 pending hardship cases and deregulate medicine prices outside the essential list was welcomed by the Pakistan Pharmaceutical Manufacturers Association (PPMA) and Pharma Bureau.
They stated that this move, aligned with international best practices, would ensure access to quality medicines at competitive rates and alleviate patients’ difficulties.
(Islamabad51_Newsdesk)
