Deputy Prime Minister calls for inquiry into PIA’s losses
Deputy Prime Minister and Foreign Minister Ishaq Dar has called for a
cabinet inquiry into the 87 billion rupee loss suffered by Pakistan
International Airlines (PIA). This request comes amid ongoing concerns about
the airline’s privatization process and operational challenges, particularly
regarding the grounding of PIA aircraft.
Dar’s remarks followed a notice from Pakistan Peoples Party (PPP) Senator
Sherry Rehman, who raised issues surrounding the lack of clarity in the
privatization plan and the continued grounding of many PIA planes. In response,
Dar emphasized the importance of keeping PIA’s aircraft operational, noting
that of PIA’s 34 planes, only 19 are currently in service, with the remainder
grounded.
Senator Rehman pointed out that it took four years for PIA to recover, and
after over four and a half years, the airline had only just resumed its
European routes. She also questioned the progress of PIA’s privatization,
particularly in light of an advertisement showing a PIA plane heading toward
the Eiffel Tower.
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Dar clarified that the grounding of PIA planes was largely a result of a
statement by former minister Ghulam Sarwar, which led to the airline losing 84
billion rupees in revenue from European routes. He confirmed that an inquiry is
being conducted into the controversial advertisement. Additionally, Dar noted
that PIA currently operates a fleet of 22 planes, including six Boeing and 11
Airbus aircraft.
On the subject of privatization, Dar reassured that PIA’s privatization
process would continue, with the airline’s sale remaining on the agenda. He
expressed hope that more competitive bids would be received in the future.
Dar also discussed efforts to restore PIA’s operations to the UK, with a UK
delegation scheduled to visit Pakistan at the end of January. He expressed
optimism that flights to the UK could resume by March or April, with hopes that
this would eventually extend to flights to the United States.
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He concluded by acknowledging that PIA had incurred an annual loss of 87
billion rupees and reiterated the call for the cabinet to investigate the
reasons behind this loss.
On January 10, after a four-year hiatus, PIA resumed operations to Europe.
The first flight, PK 749, a Boeing 777, departed from Islamabad for Paris with
all seats booked. The flight was inaugurated by Aviation Minister Khawaja Asif,
who highlighted the importance of this route for the large Pakistani community
in France and other European countries.
Minister Asif also discussed the broader context of PIA’s financial
struggles, noting the airline’s 800 billion rupees in debt and the closure of
profitable routes. He added that the airline’s privatization would soon allow
it to compete with other commercial carriers. Asif expressed hope that flights
to the UK would also resume soon, following the success of the European
operations.
Source: Minute Mirror