PIA suffers Rs5.4b loss in five months
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.
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.