Senate told: PIA’s accumulated losses soar to Rs169 billion

Some 148 employees promoted since June.

ISLAMABAD:

A Senate Standing Committee informed the upper house of parliament on Friday that Pakistan International Airlines, the national flag carrier, is suffering from an accumulated loss of Rs169.921 billion from June 30.

A total loss Rs18.007 billion was accumulated since January 2013.

The information was provided through a written document to the Senate by the finance division on a query forwarded by Senator Sehar Kamran of the Pakistan Peoples Party and Senator Tahir Hussain Mashadi of the Muttahida Qaumi Movement.

The house was also told that there are outstanding loans, both domestic and international, of Rs160 billion against the national airline. Of the total, Rs50 billion are outstanding on account of loans taken for aircraft purchase while another Rs110 billion are being injected into the airline’s working capital.

The legislators were informed that as many as 148 employees, working in different departments of the national carrier, have been promoted since June.

Lack of sufficient aircraft, an ageing fleet which resulted in technical delays and ground handling limitations were the reasons cited for the frequent delays in the PIA flights during the past one year.

To overcome the delay in flights, the aviation department stated that PIA was planning to induct 10 new fuel efficient narrow body aircraft on dry lease and four aircraft on wet lease. The tender notice to invite suitable bids has already been advertised. Economical operations have also been suspended till the availability of sufficient number of aircraft.

The upper house was informed that the cabinet division had received over 500 applications for the use of radio frequency spectrum but out of the total only 191 were issued licences.

Published in The Express Tribune, August 31^st, 2013.