Loss-making entities wasting national resources mercilessly
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.