By Afshain Afzal

The contemporary geo-strategic environment and threats of leakage of strategic data and air violations demand Pakistan’s control over her space. The security calculus demands Pakistan's government monopoly and control over the aviation industry. The recent statement of Chairman Privatization Commission Mr. Abdul Aleem Khan that he would allow divestment of 51% to 100% shares of Pakistan International Airlines (PIA) and amendment in Request for Statement of Qualification (RSOQ) has exposed the dirty game being played with regard the Pakistan’s flag bearer airliner in the same manner Privatization Commission did with the selling of state-owned Habib Bank Limited.

The question arises did the International Monetary Fund (IMF) ever recommend the sale or privatization of PIA, Steel Mill or other State Owned Enterprises (SOEs)? No IMF or World Bank never put such demand as a condition for the grant of loan but instead recommended serious restructuring and investment. The name of IMF is being linked with the sale of 31 State Owned Enterprises. The board of directors of PIA has already approved the government's plan to privatize the national flag carrier ahead of the country securing a new loan programme but still Pakistan's strategic asset can be saved from going into the hands of inexperienced, financially weak and ineligible due to failing to meet the conditions announced earlier by Privatization Commission.

Pakistan has allowed all national and foreign airlines to operate from all international airports of Pakistan, which is also the main cause of losses. Hence all International Flight Operations to and from most International Airports of Pakistan are permissible. It's rare for any country to grant these rights. This is good for competition but dangerous for national security. Let us have a look what the other developed nations do with their aviation industries. In the US the federal government prohibits foreign airlines from operating flights between American cities. Under US law, foreign-owned or operated airlines are not allowed to fly routes within the United States. Air Cabotage laws ban foreign airlines from operating routes between US airports. With regard to commercial flights, the United Kingdom Civil Aviation Authority do not accept foreign or European Union Aviation Safety Agency. Therefore, the operator would have to limit to one stop in the UK or include a tech stop outside the UK. Similarly, in Germany air carriers based outside the European Economic Area are not allowed to operate flights within the community, however, member states are entitled to operate flights within the community but still a special application or notification is not required.

If we critically examine why PIA failed to perform as a profitable enterprise we can enumerate some of the main reasons. These include inexperienced and inefficient leadership from other departments or unfit blue-eyed persons, employment of employees by politicians and Grade-22 officials without considering merit or recruitment rules, corruption and kickbacks in purchases including acquisition of aircraft and equipment, personal interests in agreements with stakeholders, third parties including award of contracts and making fake entries or certifications regarding maintenance on international standards of emission etc and where Pakistan all foreign airlines to operate in all the international airports but PIA is restricted to one stop only. It is high time to give up the idea of selling PIA and Islamabad must follow the IMF recommendations including restructuring and investment by engaging the private sector, of course under certain guarantees.