ISLAMABAD, Aug 26: The IMF has called for privatizing PIA to reduce its losses and make it more competitive, says secretary defence Lt Gen Hamid Nawaz Khan.

“We had recently met the IMF mission members when they were here and told them that we are not against the privatization of the PIA”, he further stated.

Mr Khan who is also the chairman of PIA told a news conference here on Monday that a number of steps had been taken to improve the performance of the organization.

However, he said the PIA management will welcome some organized disinvestment of the national airlines.

Managing Director of PIA Chaudhry Ahmed Saeed who was also present on the occasion said that he was also not against the privatization of PIA.

Responding to a question Mr Khan said that trade union activities had been banned in the PIA to run the organization efficiently and without any interference.

Asked what was the guarantee that the union in the PIA will not be restored when the new government took over after October polls, he said that he was not against certain healthy trade union activities. But he said that these activities should not be allowed to disrupt the normal functioning of the airlines.

The managing director said that personally he was in favour of the revival of the trade union activities in PIA.

Both the officials also said that the government was not encouraging unnecessary retrenchments in the national carrier. However, they said that they will have to induct private sector professionals in the PIA to improve its performance.

“But for this purpose we will have to offer huge salaries”, Mr Saeed said adding that presently a director in PIA drew roughly Rs50,000 per month but in case someone from the market was hired, he will have to be given about Rs300,000 per month.

“Those who are experts in the private sector seek better salaries and better perks”, the managing director of the PIA said.