Rs22b losses in PIA engineering flagged in audit report

The Auditor General of Pakistan has revealed losses of more than Rs22 billion in Pakistan International Airlines’ (PIA) engineering operations, according to the audit report for 2024–25.

The report flagged two major cases of financial loss. In one case, losses exceeding Rs14 billion were incurred due to grounded aircraft, including six Boeing 777s owned by PIA and two ATR-72 planes taken on lease.

The auditors noted that the losses stemmed from failure to adhere to maintenance timelines and delays in disposing of faulty engines. The Boeing aircraft remained grounded for varying periods between March 11, 2020, and March 1, 2021.

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The audit paragraph highlighted an additional Rs6 billion loss caused by 25 other permanently grounded aircraft engines. The losses occurred because the engines were neither reused nor disposed of in time.

The report further disclosed that around Rs3 billion had been paid to the Civil Aviation Authority (CAA) in relation to these grounded planes, while separate financial damage was incurred in parking charges.

These issues have persisted since PIA’s special audit covering 2008–2017.

Sources said that although a Departmental Accounts Committee (DAC) meeting was scheduled in January 2025 to review the matter, it was never convened.