Industry

PIA paying Rs2b loan, Rs1b interest per month (The Nation (Pakistan))

The Public Accounts Committee (PAC) on Tuesday was informed that that the national flag carrier Pakistan International Airline (PIA) is paying Rs2 billion loans and Rs1 billion interest per month because PIA is in debt of Rs161 billion.
The PAC met with Leader of the Opposition in the National Assembly Syed Khurshid Shah in the chair at the Parliament House and committee sought details of profit and loss on international routes. The chairman committee also ordered the PIA to brief the committee over its business plan.
The officials of PIA informed the committee during briefing that PIA faced Rs42 billion loss in 2013 and hopefully the loss would reduce till Rs 10 billion in 2015. The PIA officials said that with the passage of the time the profit of the airline has been increased and the administration was taking steps to stop the damages. PIA faced the loss of Rs36.1 billion due to the variation in value of dollar in international market in 2008 and bought Booing 777 and ART airplanes of Rs 31.5 billion.
The Managing Director PIA informed the committee that PIA has nine 777, six ART and six airbuses but the eight booing 777 bought on loan and one on lease and only four ART are in operations. He said that PIA has decided to buy made its business plan but Rs 288 billion was received PIA inherited. He said that PIA has requested the government to help the PIA for reducing its loan.
The MD PIA informed the committee that national airline earned Rs9 billion during Hajj season and needed to extend it till Rs13 billion. He said that the PIA charges Rs75 thousands form those who visit Saudi Arabia to perform Umra. He said that PIA spent Rs55 billion on the oil usage in 2013 and Rs44 spent in 2014.
He said that PIA flights in operation on 25 internals routes and it is earning good income from the routes of Middle East, Canada and Malaysia and facing loss from New York, China and Japan routes. Chairman Committee Syed Khurshid Shah said that he will request the government to help PIA for paying back the loan. The committee asked PIA to submit the report on those expenditures which airline spent on grade 1 to grade 4 employees of the airline. The chairman committee said that PIA will be in profit this year because it did not reduce the fares after reduction of oil prices in International market.
Degree of Waqar Younus brother fake: Agencies add: The degree of Faisal Younus, brother of Pakistan cricket team head coach Waqar Younus, has been found fake. Public Accounts Committee has ordered scrutiny of all records. Opposition leader Khurshid Shah presided over a meeting of Public Accounts Committee in which aviation authorities informed him that brother of Waqar Younus, Faisal, was recruited in 2003 in Pakistan International Airline (PIA). After three years, it was discovered that his educational documents were fake. However, the investigation officer did not disqualify him from the job but placed a decrement of 3 years in the pilot’s seniority.