Pakistan International Airlines Corporation (the Airline) was established and operates under the Pakistan International Airlines Corporation Act, 1956. In recent years, though, the Airline has not been able to fulfill its statutory mandate. It has been incurring huge losses and has become a burden on the national exchequer. The Airline has also failed to provide the quality of services deserved by the people of Pakistan, as mandated by law.
The main objectives of the Government of Pakistan (GOP) with regard to the Airline are to ensure its continued operations as the country’s national airlines; to promote rapid development and modernization of the Airline through the help of strategic private sector participation which will facilitate injection of private sector capital, skills and technology to upgrade the Airline operational and financial performance; to achieve improvement in performance and operational efficiency in various business segments of the Airline; to redefine GOPs role from an owner cum operator to that of a regulator whilst widening the ownership base of the Airline. In order to achieve these objectives, it is imperative that the Airline be corporatized and converted in to a public limited company, incorporated under the Companies Ordinance, 1984.
This conversion will enable the GOP to implement the plan of revitalization of the Airline and develop a healthy, competitive aviation sector in Pakistan.