An expatriate like me was duped to invest in shares offered by PIAC. The shares were valued at around Rs 23, when they were offered for sale to the public.
They are today valued at less than Rs 13. As usual the PIA management and their godfathers in Islamabad, painted a very rosy picture, amidst claims of unprecedented profits and the so-called turnaround.
Pardon me saying so, it is foolish public, which believed these tall claims and who were turned around and given a jolt of their life time. I am sure PIA's chairman and members of PIAC Board of Directors, has not invested a single cent, because they knew the exact picture.
An analytical study of balance sheet now reveals, that PIA's liabilities are much more than its assets. It has made huge capital investments and acquired loans to induct aircraft, which it cannot pay back from meagre revenues it earns.
So it has to arrange for new funds to pay back these instalments. This catch-22 situation will continue, without any reprimand.
PIA first decided on a phased induction of B777s, and took possession of three new expensive aircraft. There was then this controversy of overpriced and defective seats installed in them from some Italian firm, followed by inflight software, which has never worked properly.
It then went on to take on lease A-310s, most of them having major structural defects. Now PIA has decided to purchase Bombardier aircraft (good choice), to replace its Fokkers. It then also intends to expedite other options.
One fails to understand this mad rush, as if time is running out and there is a sinister element involved.
After all at the end of the day, all these loans have to be paid off. It seems that Pakistan's poor tax payers will spend the rest of their lives paying off these debts.
The government seems to have enough cash to procure expensive new cars, brand new aircraft, VVVIP security etc. However it has a hands-off policy, when it comes to invest in basic health, education and providing justice and security to masses.
Pakistan's National Assembly either does not have the time or permission to debate these matters.
Shaukat Aziz has to be seen to provide good governance, instead of mere lip service.
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