Tag: Certainly

  • Pakistan faces worsening financial woes as state-owned enterprises suffer losses

    Pakistan faces worsening financial woes as state-owned enterprises suffer losses

    Interim Prime Minister (PM) Anwaar-ul-Haq Kakar conveyed on Wednesday that Pakistan is grappling with financial challenges, exacerbated by the continuous losses incurred by state-owned enterprises (SOEs).

    The PM presided over a high-level meeting specifically addressing the issues plaguing Pakistan International Airlines (PIA). 

    During this meeting, comprehensive briefings were presented on various aspects of PIA’s operations.

    Key figures, including Caretaker Minister for Privatisation Fawad Hassan Fawad, Adviser to the Prime Minister Ahad Cheema, and other relevant authorities, were in attendance.

    PM Kakar articulated his concerns regarding the protracted decision-making process concerning PIA’s issues.

    He highlighted the urgency of expediting the privatisation of PIA and other state-owned enterprises that are incurring losses, highlighting that these financial setbacks should not be shouldered by the public through tax money.

    PM Kakar underscored that reforming the aviation sector could lead to improved services for the public.

    Furthermore, he stressed the importance of transparency in the privatisation process and the need to assign responsibility for the losses to facilitate corrective actions and prevent further financial setbacks.

    The meeting received updates on PIA’s financial situation and the progress of its privatisation process.

    The PM directed that the privatisation of the national flag carrier be expedited to relieve the burden on the national treasury.

  • Financial turmoil threatens PIA: Flight cancellations surge, salaries delayed

    Financial turmoil threatens PIA: Flight cancellations surge, salaries delayed

    The Pakistan International Airline (PIA) faces an imminent crisis, as a high-ranking official from the national carrier has issued a warning that flight operations may be suspended by September 15th if emergency funding is not promptly secured. This concerning development, as reported by Geo News, underscores the severity of the situation.

    In a statement to Geo News on Wednesday, a senior director at PIA highlighted that the operational fleet has dwindled from 23 to just 16 aircraft, resulting in the unfortunate cancellation of numerous flights. The dire financial straits of the airline have led to significant disruptions.

    Furthermore, the official revealed that renowned aircraft manufacturers, Boeing and Airbus, have halted the supply of crucial spare parts to PIA due to outstanding payments. This disruption, coupled with reduced flight operations, has incurred substantial daily losses running into millions of rupees for the national airline.

    In a distressing incident, one PIA aircraft was temporarily detained at Dammam airport, while four others faced a similar situation at Dubai airport, all due to unpaid fuel bills. These aircraft were eventually permitted to depart based on written assurances from PIA, with the International Air Transport Association (IATA) reinstating PIA services following an emergency payment of $3.5 million.

    The official’s somber warning emphasized that without an injection of Rs23 billion in emergency funds, flight operations may face suspension by September 15th.

    In response to this critical situation, a PIA spokesperson, in a statement, assured that exhaustive efforts were underway to avert the suspension of flight operations.

    Earlier reports had indicated that PIA’s financial challenges had severely impacted its flight schedule, resulting in the cancellation of both domestic and international flights. The airline had urgently requested government intervention to provide the necessary funds, and there were also reports of unpaid salaries to PIA employees.

    This financial turmoil for PIA had previously prompted the grounding of five leased aircraft, with the possibility of grounding four more due to ongoing financial constraints. The airline had sought an emergency bailout of Rs22.9 billion, which was unfortunately rejected by the Economic Coordination Committee (ECC). Additionally, the ECC declined requests for the deferment of monthly payments to the Federal Board of Revenue (FBR) and the Civil Aviation Authority (CAA).

    In another setback, last month, the FBR had frozen 13 PIA bank accounts due to non-payment of Rs8 billion in Federal Excise Duty (FED), further compounding the airline’s financial woes.

  • UK job market: Rise in unemployment, but paychecks soar to new heights

    UK job market: Rise in unemployment, but paychecks soar to new heights

    The United Kingdom’s unemployment rate saw a slight increase to 4.3 per cent during the three months leading up to the end of July, as confirmed by official data released on Tuesday. This marks a marginal rise from the previous quarter’s 4.2 per cent unemployment rate, as reported by the Office for National Statistics (ONS).

    In the same period, average regular earnings, excluding bonuses, exhibited a remarkable annual growth rate of 7.8 per cent, a historic high since comparable records began in 2001, according to the ONS.

    In response to these figures, Finance Minister Jeremy Hunt emphasised the persistence of elevated wage growth, partly attributed to one-time payments to public sector employees. He stressed the importance of adhering to their plan to combat inflation to ensure sustainable real wage growth.

    Prime Minister Rishi Sunak had earlier expressed his intention to halve UK annual inflation, especially when it exceeded 10 per cent, as reported by AFP. However, the current inflation rate remains at 6.8 per cent, surpassing that of other G7 nations.

    The Capital Economics research group’s UK economist, Ashley Webb, observed a gradual relaxation in the labour market’s tightness during July. Nevertheless, the substantial wage growth noted is expected to raise concerns at the Bank of England, potentially leading to an anticipated interest rate hike from the current 5.25 per cent to a peak of 5.5 per cent at the upcoming regular policy meeting.