Caretaker cabinet approves PIA’s restructuring, privatization of First Women Bank

ISLAMABAD: The caretaker federal cabinet has approved the restructuring of Pakistan International Airlines (PIA) and the privatization of First Women Bank Limited, among other decisions, in a meeting held on Tuesday.

The meeting, chaired by Caretaker Prime Minister Anwarul Haq Kakar, was briefed by the Privatization Division on the financial and administrative restructuring of PIA, which has been suffering losses for several years.

The cabinet was informed that a financial adviser had devised a plan to split PIA into two companies: Top-Co and Hold-Co. Top-Co would include PIA’s core operations of engineering, ground handling, cargo, flight kitchen and training, while Hold-Co would comprise other entities and properties such as Precision Engineering Complex and PIA Investment Limited.

The cabinet approved the restructuring plan, which is expected to attract investors to PIA, and directed the Cabinet Sub-Committee on Privatization to deal with the issues related to PIA and other government-owned institutions as soon as possible.

The cabinet also approved the privatization of First Women Bank Limited, a state-owned bank that provides financial services to women entrepreneurs.

On the recommendation of the ministry of national health, the cabinet approved the proposals to de-regulate the prices of medicines that are not included in the national list of essential medicines. This means that the prices of drugs other than essential medicines will be exempted from the Drugs Act, 1976 and the Drug Pricing Policy 2018 will be amended accordingly.

The cabinet also decided that the Pakistan Medical and Dental Council and the Drug Regulatory Authority will ensure that vitamins, multivitamins, minerals and over-the-counter products are not prescribed to patients by doctors and are listed as per the international standards. The Drug Regulatory Authority will also coordinate with the provincial governments on this matter.

The cabinet approved the appointment of Lt. Gen. Tahir Hameed Shah as a member and chairman of the Pakistan Ordnance Factories Board, effective from November 29, 2023, on the recommendation of the Ministry of Defense Production.

The cabinet also awarded and allowed several officials to receive medals and awards from foreign governments in recognition of their services, on the recommendation of the Ministry of Foreign Affairs. These include Major Abid Mansoor Khan, who received the Note-e-Shujaat from the Ministry of Defense of Saudi Arabia, Mohammad Ashraf Khan, who received a gold medal from the Government of Austria, and Air Commodore Syed Imran Ali, who received the Defense Cooperation Award First Class from the Government of Japan.

On the recommendation of the Ministry of Law and Justice and the proposal of the Chief Justice of Peshawar High Court, the cabinet approved the conversion of four out of eight accountability courts in Peshawar into special courts and the appointment of judges for these courts. The remaining courts will continue to function as accountability courts. The cabinet was assured that these changes will not entail any additional cost to the national exchequer.

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