The International Monetary Fund (IMF) has asked the federal government to minimize the losses of Pakistan International Airlines (PIA).
For the talks over the ninth review of the problematic loan programme, the IMF mission is in Pakistan.
As the total losses exceed Rs400 billion, the fund has ordered the federal government to develop a plan to reduce the losses being experienced by the PIA.
According to the people familiar with the issue, the IMF has also asked Islamabad for a strategy on how to turn the PIA into a successful enterprise.
Earlier in the day, it emerged that the International Monetary Fund (IMF) expressed concern over fiscal indiscipline and mismanagement in government departments.
IMF concerned over fiscal indiscipline in state-owned entities
The global lender, according to insiders, has voiced its displeasure about the ongoing deficit in state-owned enterprises.
The IMF noted that there had been no reduction in the transmission losses for gas and electricity. The IMF group noted that Pakistan was consistently suffering losses in the energy industry. According to insiders, “it pressed on the privatization of the state entities incurring losses.”
According to insiders, the monetary fund has also urged that the government limit its economic intervention through privatization and that government agencies undergo routine audits.
