Pakistan shifts from stabilisation to export-led growth, says finance minister

[Hmmmm]

This should shed light on why GoP gets 10B. While they may get 10B only, they stand to gain from not having to bail out SOEs that require almost 1.58T in subsidies every year. That obviously is not just PIA but PIA is in the top-7.

Once again, let me make it clear, I understand the circumstance under which PIA was sold for 10Bn. I have no objection to it. My issue is with calling it a Rs135Bn sale which it simply isn't.

 

[VCheng]

OMG, you crack me up with the Coloring vs Calculus tasks!

I can only tell it like it is, not as I would wish it to be.

 

[Blain2]

Once again, let me make it clear, I understand the circumstance under which PIA was sold for 10Bn. I have no objection to it. My issue is with calling it a Rs135Bn sale which it simply isn't.

It is fine. 135B was the value assessed and the final bid accepted. You are right that GoP only gets Rs 10B of it. But the context is important. GoP is carrying DEAD WEIGHT which needs to be shed ASAP.

 

[Meengla]

It is fine. 135B was the value assessed and the final bid accepted. You are right that GoP only gets Rs 10B of it. But the context is important. GoP is carrying DEAD WEIGHT which needs to be shed ASAP.

Right.
There is a dedicated thread about the PIA sale and I have posted a few videos of Mr. Arif Habib himself. In short, Rs. 10 billion to go the govt but the rest of the money--I think around Rs. 120+ billion--will be invested into bringing the dead planes to life and other changes. Discussing the PIA should NOT be a political issue now--it was too political to sell PIA due to the intense PPP pressure for decades but they are now sorted out due to the 'Danda' of the military.

 

[VCheng]

It is fine. 135B was the value assessed and the final bid accepted. You are right that GoP only gets Rs 10B of it. But the context is important. GoP is carrying DEAD WEIGHT which needs to be shed ASAP.

Right.
There is a dedicated thread about the PIA sale and I have posted a few videos of Mr. Arif Habib himself. In short, Rs. 10 billion to go the govt but the rest of the money--I think around Rs. 120+ billion--will be invested into bringing the dead planes to life and other changes. Discussing the PIA should NOT be a political issue now--it was too political to sell PIA due to the intense PPP pressure for decades but they are now sorted out due to the 'Danda' of the military.

The numbers are immaterial TBH. What is important here is for the government's books to be free of this deadweight entity for the future.

 

[Meengla]

The numbers are immaterial TBH. What is important here is for the government's books to be free of this deadweight entity for the future.

Of course.
But what is even more important is that the military 'Danda' has been applied on PPP despite that party being a crucial part of the current arrangement and the Danda probably has been and will be applied on the other political parties in the current setup. The people of Karachi are getting excited about finally some help they will get; you will see that.
I don't think many here are reading what's being planned for Pakistan. You and I differ on whether the plans will work or not. I am of the firm opinion that the overall economy of Pakistan will significantly improve by 2030. But, of course, only time will tell. And time has already told us that despite the plans and wishes of the followers of a certain political 'party' of Pakistan in 2022, no one can say that Pakistan's situation has not gone worse then their wishes.

 

[VCheng]

But, of course, only time will tell.

You said it.

To me, it is not as much a matter of the danda as it is simply running out of all options that is forcing such changes.

Money, or more correctly, the lack thereof, has its own way or providing suitable motivation to just about anything and anybody. Pakistan will learn to evolve and survive, or to simply drown, based on its economy and what it must provide for the ever enlarging population, everything else be damned.

 

[Meengla]

You said it.

To me, it is not as much a matter of the danda as it is simply running out of all options that is forcing such changes.
Money, or more correctly, the lack thereof, has its own way or proving suitable motivation to just about anything and anybody. Pakistan will learnt to evolve and survive, or to simply drown, based on its economy and what it must provide for the ever enlarging population, everything else be damned.

Can't dispute a word you have said in your post. I have said in this forum multiple times that Pakistan faced a 'do or die' situation in 2022. There is no going back to that come what may. And part of my optimism is coming from not only the ruthless use of the Danda but also from the positive developments on the foreign policy fronts, no small thanks to India's failed Operation Sindoor in May 2025.

 

[Pakistan Space Agency]

Yara, I have ask this question of all of you who are applying a very critical eye to this sale.

PIA has been a white elephant out of hell for the GoP for 2+ decades now. The conditions for the sale etc. reflect the environment which sees this white elephant for what it is.

It isn't that the GoP did not want to get many more billions for this sale, it isn't that they WANT to be stuck offering tax incentives and golden retirement packages. It is just that they CANNOT rid of this liability without doing so.

They have gone through multiple auction attempts and there is absolutely NO interest from ANY outsiders who can bring in FDI with this sale.

The local buyers are having to team up to get a viable bid just to even meet the floor for the sell-off.

So why are we *acting* as if investors were tripping over each other to bid for this company? What else can the GoP do except offer insane incentives for some local investors to take this liability off its back? Else, it will continue hemorrhaging Pakistan's limited coffers till eternity with no turn-around in service, sales, profits etc.

I could understand if the criticism was that PIA is a money making machine and the GoP hurried through its sale without due-diligence. Here, it has been a case of over-diligence with no upside on a white elephant that is not making any profits or growing.

People don't seem to highlight the fact that PIA has a debt of Rs 600 billion.

Who on earth would want to take on that much debt and also pay a fortune for it on top of that?

Poundland, a UK giant with 800 stores was recently sold for just £1 to an American firm.

There are other examples from the UK.

Yours for a pound: The firms sold on the cheap

As the owner of Homebase sells the troubled DIY chain, what other firms have been bought for £1?

www.bbc.co.uk

British Airways was making a profit of £500 million annually in 1987, but it was still privatised. It had a debt of around £530 million at that time.

 

[Blain2]

Right.
There is a dedicated thread about the PIA sale and I have posted a few videos of Mr. Arif Habib himself. In short, Rs. 10 billion to go the govt but the rest of the money--I think around Rs. 120+ billion--will be invested into bringing the dead planes to life and other changes. Discussing the PIA should NOT be a political issue now--it was too political to sell PIA due to the intense PPP pressure for decades but they are now sorted out due to the 'Danda' of the military.

Exactly, my sentiments would be the same had this transpired in either the PTI or PPP tenures. This is definitely not a political issue. It needs to be looked upon with cold financial logic.

 

[Pakistan Space Agency]

lol at trade.. pakistan doesn´t care about trade

The cumulative international trade of Pakistan for the financial year 2024-2025 was $110 billion.

Exports	$40.44 billion
Imports	$69.40 billion

So what are you talking about?

The total size of Afghanistan's Nominal GDP is just $18 billion which is less than that of Botswana.

Country​	Nominal GDP​	Population​
Afghanistan	$18.08 billion	43.84 million
Botswana	$19.19 billion	2.56 million

Even North Korea which has a nominal GDP of just $17 billion have mastered atomic power as well as launching their own satellites.

 

[Meengla]

Even North Korea which has a nominal GDP of just $17 billion have mastered atomic power as well as launching their own satellites.

I have been watching North Korean documentaries for years and even was planning a 5-day arranged/escorted tour of that country during the pre-Corona years but since then such tours are no longer available. Anyway, from what I have seen, North Korea maybe very poor but I don't think they are in a famine like situation which existed when the Soviet subsidies were removed in early 90s. I know, I know some would bring up their dire circumstances but honestly I'd rather live in NK then in Afghanistan and dozens of countries of the world. Life hard but also safe and predictable compared with many countries of the world. But why do I bring NK up: To repeat what I have been saying here: Stability, focus and continuity of policies are often better then the chaotic idealism present in many countries of the world.
Pakistan needs at least 10-15 years of stability, focus and continuity of policies no matter who rules or what form of govt is in place. That's the magic sauce.

 

[Blain2]

I have been watching North Korean documentaries for years and even was planning a 5-day arranged/escorted tour of that country during the pre-Corona years but since then such tours are no longer available. Anyway, from what I have seen, North Korea maybe very poor but I don't think they are in a famine like situation which existed when the Soviet subsidies were removed in early 90s. I know, I know some would bring up their dire circumstances but honestly I'd rather live in NK then in Afghanistan and dozens of countries of the world. Life hard but also safe and predictable compared with many countries of the world. But why do I bring NK up: To repeat what I have been saying here: Stability, focus and continuity of policies are often better then the chaotic idealism present in many countries of the world.
Pakistan needs at least 10-15 years of stability, focus and continuity of policies no matter who rules or what form of govt is in place. That's the magic sauce.

Nai ji, hammay tau sirf jamhooriat chahiyay! ;-)

All of the ME, with controlled governments, has moved ahead of Pakistan. Syria, Iraq, Palestine, Libya, Iran, Egypt ALL have higher literacy rates, better healthcare and social care systems than the bastardized democracy has ever delivered in Pakistan. I don't include KSA/UAE because that is a whole different ball game and they too have controlled systems of government instead of providing useless "mandate" to awaam.

 

[maxpane]

we need 20 - 30 year stability in policies to back on track

 

[VCheng]

Nai ji, hammay tau sirf jamhooriat chahiyay! ;-)

All of the ME, with controlled governments, has moved ahead of Pakistan. Syria, Iraq, Palestine, Libya, Iran, Egypt ALL have higher literacy rates, better healthcare and social care systems than the bastardized democracy has ever delivered in Pakistan. I don't include KSA/UAE because that is a whole different ball game and they too have controlled systems of government instead of providing useless "mandate" to awaam.

Every country has made itself into what it actually wants to be, including Pakistan. What seems to be the issue here?