PIA distributed 258,000 free tickets causing loss of billions of rupees
An official audit has revealed that Pakistan International Airlines (PIA) caused a loss of Rs 9.43 billion to the national exchequer over a six-year period by distributing hundreds of thousands of free and heavily discounted tickets.
Between 2011 and 2016, PIA issued more than 258,000 tickets free of charge and sold another 116,000 at a 95% discount, according to the Auditor General of Pakistan.
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The report highlights that a majority of these concessions were granted to individuals with no formal ties to the airline. Moreover, the discounts were issued without authorization from the PIA chairman or managing director, and no internal meetings were held to address the matter despite multiple reminders—until 2023.
The audit recommended an immediate end to such practices.
Policy reforms and response
In response, a PIA spokesperson said the practice was discontinued in 2018 following a Supreme Court ruling against the free distribution of tickets. The spokesperson explained that the tickets were previously issued under an agent incentive program aimed at boosting sales.
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They also noted that the audit observations date back nearly a decade and that their review by the Departmental Accounts Committee (DAC) falls under the jurisdiction of the relevant ministry. The spokesperson suggested that renewed focus on the issue may stem from pressure by certain interest groups.
Source: Daily Ausaf