Loss-mak­ing en­ti­ties wast­ing na­tional re­sources mer­ci­lessly

The Pak Banker - - NATIONAL - Staff Re­porter

Pa­tron Islamabad Cham­ber of Small Traders Shahid Rasheed Butt on Sun­day said all dys­func­tional cor­po­ra­tions in­clud­ing Pak­istan Steel Mills (PSM) and Pak­istan In­ter­na­tional Air­line (PIA) should be sold im­me­di­ately.

Busi­ness com­mu­nity of Pak­istan fully sup­ports sale of un­vi­able en­ti­ties in­flict­ing an­nual loss of tril­lions of ru­pees which are more than what na­tion spends on de­fence, he said.

Shahid Rasheed Butt said that gov­ern­ment should sell loss-mak­ing en­ti­ties and use the funds on con­struc­tive ac­tiv­i­ties as well as so­cial wel­fare which is nec­es­sary for the na­tional devel­op­ment.

He said that rea­son be­hind losses in PSM are said to be over em­ploy­ment and un­abated cor­rup­tion while Rs300 bil­lion losses in PIA is not ex­cess num­ber of em­ploy­ees but short­age of aero­planes.

PIA con­tin­ued to ground older air­craft as per the pro­ce­dures but could not bought of got new planes on lease due to lack of funds which in­creased the num­ber of em­ploy­ees per plane, he added.

He said that the man­age­ment sold prof­itable routes to raise funds which pro­vided tem­po­rary relief but it proved harm­ful in the longer run.

Pak­istan In­ter­na­tional Air­line spends four­teen per­cent of rev­enue on salaries while other air­lines spend 15 to 20 per­cent on the same, he said, adding that Pak­istan In­ter­na­tional Air­line and other air­lines con­tin­ued to spend fifty per­cent on their rev­enue on fuel be­fore the fall in oil prices.

Re­duced oil prices proved bo­nanza for other air­lines but PIA could not get full ben­e­fit of the op­por­tu­nity due to en­hanced taxes on im­ported fos­sil fuel.

Situation can be im­proved if PIA is pro­vided with suf­fi­cient quan­tity of air­craft while there is no cure in sight fir the sick­ness of PSM.

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