AGL 40.02 Increased By ▲ 0.02 (0.05%)
AIRLINK 127.50 Increased By ▲ 0.46 (0.36%)
BOP 6.70 Increased By ▲ 0.03 (0.45%)
CNERGY 4.52 Increased By ▲ 0.01 (0.22%)
DCL 8.43 Decreased By ▼ -0.12 (-1.4%)
DFML 41.67 Increased By ▲ 0.23 (0.56%)
DGKC 87.10 Increased By ▲ 0.25 (0.29%)
FCCL 32.18 Decreased By ▼ -0.10 (-0.31%)
FFBL 65.00 Increased By ▲ 0.20 (0.31%)
FFL 10.15 Decreased By ▼ -0.10 (-0.98%)
HUBC 109.80 Increased By ▲ 0.23 (0.21%)
HUMNL 14.67 Decreased By ▼ -0.01 (-0.07%)
KEL 5.15 Increased By ▲ 0.10 (1.98%)
KOSM 7.20 Decreased By ▼ -0.26 (-3.49%)
MLCF 41.40 Increased By ▲ 0.02 (0.05%)
NBP 59.99 Decreased By ▼ -0.42 (-0.7%)
OGDC 195.55 Increased By ▲ 5.45 (2.87%)
PAEL 28.40 Increased By ▲ 0.57 (2.05%)
PIBTL 7.76 Decreased By ▼ -0.07 (-0.89%)
PPL 151.56 Increased By ▲ 1.50 (1%)
PRL 26.65 Decreased By ▼ -0.23 (-0.86%)
PTC 16.19 Increased By ▲ 0.12 (0.75%)
SEARL 78.19 Decreased By ▼ -7.81 (-9.08%)
TELE 7.47 Decreased By ▼ -0.24 (-3.11%)
TOMCL 35.50 Increased By ▲ 0.09 (0.25%)
TPLP 8.09 Decreased By ▼ -0.03 (-0.37%)
TREET 16.14 Decreased By ▼ -0.27 (-1.65%)
TRG 53.10 Decreased By ▼ -0.19 (-0.36%)
UNITY 26.69 Increased By ▲ 0.53 (2.03%)
WTL 1.25 Decreased By ▼ -0.01 (-0.79%)
BR100 9,941 Increased By 57.3 (0.58%)
BR30 30,924 Increased By 324.3 (1.06%)
KSE100 93,818 Increased By 462.2 (0.5%)
KSE30 29,070 Increased By 139.3 (0.48%)

ISLAMABAD: The total amount of domestic and foreign loans against Pakistan International Airlines (PIA) stands at Rs429.267 billion.

In a written reply to a question from Member National Assembly Ms Rana Ansar, the Federal Minister for Aviation, Khawaja Asif, told the house that the PIA obtained a total of Rs268.2 billion in bank loans and Rs161.067 billion loan from the government of Pakistan as on 30th September 2023.

He said that the PIA obtained these loans to deal with cash flow constraints and to induct aircraft, engines, and procure spares for the sustenance of operational requirements.

The minister said that the PIA is facing severe cash flow challenges, which in turn affected its regularity and punctuality due to fleet constraints.

He said that the major areas that caused losses the most of (i) finance cost, (ii) exchange gain (loss), (iii) increase in fuel price, and (iv) increase in Karachi Interbank Offered Rate (KIBOR) rate. He said that despite the above, robust attempts are made to avoid delays.

He said that the PIA cancelled a number of flights due to fleet constraints. He said that to overcome the ongoing challenges of financial constraints and operation, the government has decided to undertake the divestment process. He said that the process is underway and expected to be complete by June 2024 as per government’s directives.

He said in the financial year 2022, the revenue increased due to the launch of new routes such as Baku while the high operational cost was mainly due to the high fuel consumption and its related charges. He said that net loss increased significantly due to the increase in exchange loss by 1.62 times in 2022 as the rupee devalued.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Wolverine Apr 02, 2024 06:08pm
First of all PIA Management should be dealt with strongly for their failures and corruption with kick backs. Each and every ground department is highly corrupt.
thumb_up Recommended (0)
Wolverine Apr 02, 2024 06:09pm
Even after generating so much revenue and even after having high value assets all around the world and even within Pakistan
thumb_up Recommended (0)
Wolverine Apr 02, 2024 06:09pm
This airline remained under huge burden of debts and couldn't improve its service and the condition of its aircrafts and employees.
thumb_up Recommended (0)
Wolverine Apr 02, 2024 06:10pm
But the management made millions. Their assets and accounts should be thoroughly checked by some loyal and honest authority which doesnt live in Pakistan and is neither a dual national nor a Pakistani
thumb_up Recommended (0)