PIA Inflicts Rs. 60 Billion Loss on National Exchequer Due to Aircraft Grounding

Pakistan International Airlines (PIA) has inflicted a whopping Rs. 60 billion loss to the national exchequer in two years due to the grounding of its aircraft fleet for maintenance.

According to a report by the Auditor General of Pakistan, the grounding of planes resulted in losses exceeding Rs. 21.81 billion in 2022, while in 2021, the losses were estimated to be more than Rs. 38 billion.

The report also shows that aircraft maintenance periods were excessively prolonged in 2022 which hurt the economy. The issue was discussed in the Departmental Accounts Committee in January 2024, where PIA management attributed the delays to a lack of financial resources. The Auditor General of Pakistan has now requested a detailed report on the financial constraints that led to these delays.

It bears mentioning that in July, the Standing Committee on Aviation was informed that the privatization process of Pakistan International Airlines Corporation (PIA) was nearing completion.

The federal government plans to retain a stake in Pakistan International Airlines (PIA) after selling the airline to the highest bidder. According to an earlier report by Bloomberg, the government wants to share in the profits following a potential increase in the value of the airline post-sale.

According to the Ministry of Privatization, authorities aim to sell ten entities including power distribution companies within a year. It is also seeking initial bids for PIA’s Roosevelt Hotel in New York.