PIA suffers Rs5.4b loss in five months


July 13, 2010

KARACHI: Special committee of the Public Accounts Committee (PAC) has been told that the Pakistan International Airlines (PIA) has suffered losses of Rs5.4 billion in the first five months of the current calendar year.

The committee met here on Tuesday, under the chairmanship of Zahid Hamid, to review pending audit objections in respect of accounts of defence ministry and its subordinate departments for fiscal year 1990-91.

Chief Officer, Faisal Malik, told the committee the PIA management has evolved a comprehensive business plan to pull the national airline out of losses. “PIA has to suffer loss amounting to Rs1 billion due to depreciation of the rupee against the dollar. PIA is bearing the brunt of payment of Rs1.8 billion per annum due to regularisation of daily-wage employees and reinstatement of sacked employees,” he pointed out. Malik suggested that if the problem of loans was addressed, then PIA could stand on its feet.

The committee was also informed that the Civil Aviation Authority (CAA) had obtained loans of Rs100 million at an interest rate of 10.5 per cent per annum from Habib Bank Limited, despite the fact that it was having a balance of Rs277 billion in its account in the bank. Online

Published in The Express Tribune, July 14th, 2010.

COMMENTS (9)

aparna | 11 years ago | Reply i think the reason of loss in PIA is extra resouce, i mean where there is a need of 20 ppl, PIA hired 40 ppl,paying more and getting less......
Sami Vohra | 11 years ago | Reply This is all fake what is written above , its just require money that its . Why I am sure regarding all this because I am traders and also run some trading market , since this whole season of Mangoes , I am trying to export from pakistan and import in differnt regions . Every week I have 5-6 Shipment VIA PIA . But Guess what in a whole week its hardly one of my shipment arrived in canada due to other people pay money under the table to the PIA staff from top to buttom . 17 time I load my shipment and every time shipment get unload becuase other people pay money under the table and use referances , in the same time period one of my friend get heart attac due to his whole shipment of mangoes get unload and he cannot bear the loss just becuase of PIA mangement . Just Simple word as a business men I will prefaire other countries for business . See as I am thinking this other people also . Then from where business will come to our Country " Pakistan" . This is my clear impression , I can show lots of evedance under this but i dont want to waste more time . I am tired of taking losses just becuase of PIA . So Now its really not effected weather its loss or in profit becuase the truth is they need money not for PIA but from their own pocket and consider all pessenger and cargo " as export by air . They dont care who pay more even they take the cargo they will unload . So be carfeull
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