PIA losses amount to Rs 150 billion in last two years alone: Government Data

PIA losses amount to Rs 150 billion in last two years alone: Government Data

ISLAMABAD - As per the government own estimates the Pakistan Internaional Airlines has lost Rs 150 billion in lost two years.

The PIA liabilities were recorded at Rs324 billion by the end of December 2015,” said the privatisation minister while briefing the National Assembly’s Standing Committee on Privatisation, which was held under the chairmanship of Syed Imran Ahmed Shah, MNA.

The government is compiling the data of losses and liabilities of PIA occurred by the end of December last year, he added. The minister said that PIA liabilities are around Rs324 billion as according to the data available of 2015.

However, he said that these liabilities might have now reached to Rs480 billion as the national flag carrier is facing around Rs150 million loss every day.

Aziz shared the plan approved by the Cabinet Committee on Privatisation regarding Privatisation of PIA. He briefed on the procedural steps and recommendations made by the Financial Advisory Consortium (FAC) for Privatisation of PIA and the steps had been taken up by the ministry. He informed the committee about the historical background of PIACL transaction, formational of restructuring and divestment strategy and its implementation (Phase-I), facilitating private sector partnership in the core operations of PIACL leading to successful closure of the transaction. He told about the statutory provisions of PIACL (Conversion) Act, 2016.

He briefed the restructuring plan of PIACL through which PIA Investment, Hotel and Real Estate which shall be segregated from Aviation, Engineering, Landing & Handling, TES & Healthcare and Flight kitchen. He briefed regarding the core and non-core liabilities of PIACL and options/modes to implement this segregations.