Pakistan injects Rs. 17bn to keep crashing airlines afloat

In this file photo, Pakistan International Airlines (PIA) plane taxies before take-off from Karachi International Airport in Karachi on April 21, 2010. (AFP)
Updated 15 November 2018

Pakistan injects Rs. 17bn to keep crashing airlines afloat

  • Continuing liquidity crisis in Pakistan International Airlines (PIA) may lead to grounding of the fleet
  • Rs 17 billion bailout package will keep PIA afloat only for another two months

ISLAMABAD: The semi-state-owned Pakistan International Airlines (PIA) was approved Rs. 17.02 billion by the government in the form of “sovereign guarantees” and other financial aid — a second bailout in the space of six months, the PIA spokesperson confirmed to Arab News on Tuesday.
PIA, a profitable airline which became a burden on the country’s already stressed exchequer, has been dying a slow death for years.
“The government did agree to park the interest till we get some respite,” but since the approved document has not been shared with the airline management, Mashood Tajwar, the struggling carrier’s general manager and official spokesman, was unable to provide further details.
PIA had amassed a colossal debt of $3.33 billion (Rs. 406 billion) up from last year’s $2.92 billion in July, and the fresh bailout from the economic coordination committee headed by Finance Minister Asad Umar is part of Prime Minister Imran Khan’s plan to attempt nursing the airline back to health before considering privatization. Khan also holds the ministerial portfolio for aviation division.
The outgoing government tried to privatize the airline but met legal hitches and criticism over its attempt to sell what once was a national asset and pride of the country.
The national flag carrier has a new chief executive and president appointed by the premier. Umar is optimistic that under the “energetic and enthusiastic” air marshal Arshad Malik, PIA will “experience a turnaround.”
Tajwar clarified that the latest injection or “support” is not necessarily all bailout. He told Arab News that the approval empowers the airline to “borrow from banks” against guarantees from the Ministry of finance. Of the Rs.17.02 billion, Rs.10 billion is sovereign guarantee and a further Rs. 40.8 billion has been allocated in the form of cash for PIA by the ministry.
However, continuous foreign loans taken by the airline have added to its woes and made its situation worse. PIA immediately owes $125.84 million to foreign lenders.The sharp decline of Pakistan’s currency has made debt servicing harder and devaluation further affected the previous financial support package by the government.
In May, the apex court objected and barred the airline from changing livery on its planes to the country’s national animal, the Markhor (the screw horn goat), part of its rebranding and repositioning strategy. The decision resulted in further loss to PIA.
The airline has suffered through operating financially unsustainable routes, grounding of aircraft because of technical problems, overstaffing, incompetent employees, union strikes, inadequate fleet, and wrong strategies. The open sky policy of the government allowed foreign airlines to take a large chunk of PIA’s business, further driving the struggling carrier into the ground.
The airline competition is so fierce that it would take several years before signs of a break even surface, said the spokesperson. PIA is in dire need of strategic planning and quick revenue generation if its management hopes to ward off privatization in the future by the government which is currently optimistic it can help to resurrect it.
But aviation Industry expert Tahir Imran told Arab News that when the airline witnessed a decline in its losses some years ago, it made the fatal decision to increase its passenger capacity by inducting larger aircrafts instead of enhancing its flight frequency by purchasing smaller more efficient and economical aircrafts. This, he said was the final nail in PIA’s coffin.


Bosnia Muslims mourn their dead 25 years after Srebrenica massacre

Updated 37 min 33 sec ago

Bosnia Muslims mourn their dead 25 years after Srebrenica massacre

  • At 1100 GMT, a ceremony laying to rest the remains of nine victims identified over the past year began at the memorial cemetery in Potocari
  • On July 11, 1995, after capturing the ill-fated town, Serb forces killed more than 8,000 Muslim men and boys in Srebrenica in a few days

SREBRENICA: Bosnian Muslims began marking the 25th anniversary of the Srebrenica massacre on Saturday, the worst atrocity on European soil since World War II, with the memorial ceremony sharply reduced as a result of the coronavirus pandemic.
Proceedings got underway in the morning with many mourners braving the tighter restrictions put in place to stem the spread of COVID-19.
At 1100 GMT, a ceremony laying to rest the remains of nine victims identified over the past year began at the memorial cemetery in Potocari, a village just outside Srebrenica that served as the base for the UN protection force during the conflict.
On July 11, 1995, after capturing the ill-fated town, Serb forces killed more than 8,000 Muslim men and boys in Srebrenica in a few days.
Sehad Hasanovic, 27, has a two-year-old daughter — the same age he was when he lost his father in the violence.
“It’s difficult when you see someone calling their father and you don’t have one,” Hasanovic said in tears, not dissuaded from attending the commemorations in spite of the virus.
His father, Semso, “left to go into the forest and never returned. Only a few bones have been found,” said Hasanovic.
Like his brother Sefik and father Sevko, Semso was killed when Bosnian Serb troops led by Ratko Mladic entered the Srebrenica enclave before systematically massacring Bosnian men and adolescents.
“The husbands of my four sisters were killed,” said Ifeta Hasanovic, 48, whose husband Hasib was one of the nine victims whose remains have been identified since July 2019.
“My brother was killed, so was his son. My mother-in-law lost another son as well as her husband.”
The episode — labelled as genocide by two international courts — came at the end of a 1992-1995 war between Bosnia’s Croats, Muslims and Serbs that claimed some 100,000 lives.
So far, the remains of nearly 6,900 victims have been found and identified from more than 80 mass graves.
Bosnian Serb wartime military chief general Ratko Mladic, still revered as a hero by many Serbs, was sentenced to life in prison by a UN court in 2017 over war crimes including the Srebrenica genocide. He is awaiting the decision on his appeal.
Radovan Karadzic, a Bosnian Serb wartime political leader, was also sentenced to life in prison in The Hague.
The Srebrenica massacre is the only episode of the Bosnian conflict to be described as genocide by the international community.
And while for Bosnian Muslims recognizing the scale of the atrocity is a necessity for lasting peace, for most Serbs — leaders and laypeople in both Bosnia and Serbia — the use of the word genocide remains unacceptable.
In the run-up to the anniversary, Serbian President Aleksandar Vucic described Srebrenica as “something that we should not and cannot be proud of,” but he has never publicly uttered the word “genocide.”
Several thousand Serbs and Muslims live side by side in impoverished Srebrenica, a town in eastern Bosnia with just a few shops in its center.
On Friday, the town’s Serbian mayor Mladen Grujicic — who was elected in 2016 after a campaign based on genocide denial — said that “there is new evidence every day that denies the current presentation of everything that has happened.”
Bosnian Serb political leader Milorad Dodik has also described the massacre as a “myth.”
But on Friday, the Muslim member of Bosnia’s joint presidency, Sefik Dzaferovic, said: “We will tirelessly insist on the truth, on justice and on the need to try all those who have committed this crime.”
“We will fight against those who deny the genocide and glorify its perpetrators,” he said at the memorial center where he attended a collective prayer.
In order to avoid large crowds on Saturday, organizers have invited people to visit the memorial center over the whole month of July.
A number of different exhibitions are on display, including paintings by Bosnian artist Safet Zec.
Another installation, entitled “Why Aren’t You Here?” by US-Bosnian artist Aida Sehovic, comprises more than 8,000 cups of coffee spread out on the cemetery’s lawn.
“We still haven’t answered the question why they are no longer here,” she told AFP.
“How could this have happened in the heart of Europe, that people were killed in such a terrible way in a UN protected area? Not to mention the fact that the genocide is still being denied.”