PIA is incurring PKR 5.64bn losses every month; revealed management

PIA Losses and Liabilities

The PIA management revealed on Wednesday (PIA) that the airline has accumulated liabilities of over PKR 300 billion. In a Senate committee briefing the company made another startling revelation that the national flag carrier apart from liabilities is also facing an additional loss of over PKR 5.6bn.

The management informed the committee that PIA earned almost PKR 7.5bn a month while its expenses were over PKR 13.14bn, which is quite a big gap. The major monthly expenses for the national airline include:

  • Loan and markup repayment of over PKR 4.4bn 
  • Fuel for over PKR 2.6bn
  • Loss/liabilities of over PKR 300bn
  • Payment of salaries for over PKR 1.6bn
  • Loss/liabilities of over PKR 300bn
  • Bank Loans of over PKR 186bn
  • Civil Aviation Authority charges/ dues of over PKR 40bn
  • Payment to Pakistan State Oil PKR 13. 5bn
  • Federal Bureau of Revenue payment for over PKR 4.5bn etc.

The PIA losses during the current government’s tenure:

  • PKR 44.71 billion in 2013
  • PKR 29.31 billion in 2014
  • PKR 29.95 billion in 2015

The briefing of Senate Committee was arranged to review the performance of PIA. The airline’s performance seems to be diminishing as it continues to bear losses. In November 2016, the company was in the news because of its non-payment of dues to PSO. Also, it obtained USD $130mil capital assistance last year, but the crash of ATR-42 aircraft has raised a lot of questions whether the aviation company is doing its job properly or not.

Furthermore, the committee chief also revealed the lack of qualified professionals in the PIA’s management staff as one of them used to be a bottler whereas as another personnel’s qualification only mentions  “schooling in the UK,” also another is just a graduate and the fourth one used to be wire manufacturer. In a country where the educated youth cannot find employment and the questionably educated are placed at high-level jobs, the economic situation is right to be doomed.

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