Pakistan International Airlines (PIA) had accumulated liabilities of over Rs 394.9 billion, including Rs 53.9 billion foreign and Rs 341 billion local liabilities, on June 30, 2016, while a total of 37 aircraft, inducing 18 on dry lease and 19 on wet lease, have been inducted since 2013. This was informed to the National Assembly Standing Committee on Cabinet Secretariat, which met with Rana Muhammad Hayat Khan in the chair at the Parliament House here on Thursday.
The committee chairman and members expressed serious resentment over non-professional attitude of the officials of Pakistan International Airlines (PIA) and Civil Aviation Authority (CAA) who attended the meeting without preparation and grilled them for not providing satisfactory answers to the questions.
According to documents tabled in the meeting, which are also available with Business Recorder, the foreign liabilities in long-term financing are $318.3 million, liabilities against assets subject to finance lease are $160.7 million, $40 million for advance from a subsidiary, $3.8 million for accrued interest and $15.9 million for short-term borrowings. The local liabilities are Rs 33.34 billion for long-term financing, Rs 16.84 billion against assets subject to finance lease, Rs 4.2 billion advance from a subsidiary, Rs 33.48 billion for short-term borrowing, Rs 39.67 billion for financing and Sukuk certificates, Rs 16.45 billion for goods, Rs 29.7 billion for collection on behalf of others and Rs 10.2 billion are payable to the employees' provident funds etc.
A CAA official told the committee that there are 18 aircraft on dry lease while four more aircraft on wet lease would be inducted and an agreement in this regard would be signed on May 31, 2017. He further told the committee that currently FIA is conducting an investigation regarding allegations of violation of rules in the lease of A-330 aircraft acquired by PIA. He said that lease period of the said aircraft was from 10th August 2016 to 9th February 2017.
About the privatisation of PIA, Additional Secretary Finance Shahid Mahmood who also holds additional charge of secretary Privatisation Commission (PC) said that a committee has been constituted to discuss the matter of restructuring and outsourcing of PIA. He said that 51 per cent share of PIA would be held by the government while 49 per cent by private stakeholders. He said that the government would have control over all management matters of PIA. The committee is preparing recommendations for PIA privatisation and after their finalisation they would be submitted to the Economic Co-ordination Committee (ECC).
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