Defence Minister Chaudhry Ahmed Mukhtar on Friday told the National Assembly that the Pakistan International Airlines (PIA) is presently facing a loss of Rs 40 billion and the government would soon come up with a an effective strategy to bring the national flag-holder out of the financial lapse.
Responding to a calling attention notice moved by lawmakers from Pakistan Muslim League-N, Anusha Rehman Khan, Ayaz Amir, Khuram Dastighir Khan and Anjum Aqeel on the accumulated losses of Rs 40 billion of PIA for 2007-08, the Minister said that this government has taken the charge of the PIA just two months back and efforts are being made to make the institution self-reliant financially.
He also said that overstaffing in the PIA was also a problem and some senior staff will be sent home and the foreign stations would also be reduced to control the financial burden. Till 2010, the Minister hoped, they would be able to run the unit without taking loans from the government. He said PIA is paying a huge amount of interests and the government has been requested to make new arrangements for softer loans and retiring the expensive ones to reduce losses.
He added the employees hired on huge perks and privileges would also be retrenched for this purpose. To a question about the proposal of privatisation of the Roosevelt Hotel in New York, he said that the proposal has been dropped on the ground that the Hotel is earning $15 million per year.
Nabeel Ghabol of PPP held the former PIA chairman Tariq Kirmani responsible for pushing the PIA into financial losses, asking the government to bring him to justice by putting his name in the ECL.
LOCAL GOVERNMENT: Lawmakers in the National Assembly from the treasury benches, particularly PML-N expressed their concerns over the irregularities existing in Local Government (LG) system, suggesting conducting an audit along with reforms in the system. The PML-N members voiced against the system terming it a 'adda' of corruption and irregularities.
However, PML-Q and MQM strongly defended the system terming it a best tool to address the basic issues of a common man. They also emphasised the need to strengthen the system to empower the people at the gross roots level. The PML-N members said that the local government system was designed by the previous government for protection of their own interests.
They were of the view that the system needs drastic changes. They alleged that the audit of district government expenditure was not carried out. MQM MNA Sajid Ahmed said that that the district government system has proved to be development-oriented and made significant development works in Karachi. However, if there was any flaws in the system these should be removed to make it more viable.
Chaudhry Abdul Ghafoor of PML-N said there is a need of wide range of reforms in the system and the administrative authority should be withdrawn from the system and handed over to the civil servants. Attiya Inayatuallah of PML-Q defended the system terming it public oriented, recommending that it should be further strengthened. "It was an effort to hand over the power to the elected representatives to address the masses problems at their door steps," she argued.