ISLAMABAD: The Senate successfully passed ‘The Pakistan International Airline Corporation (Conversion) (Amendment) Bill, 2023’ with a resounding majority of votes.
The bill, presented by Minister for Finance Ishaq Dar aims to bring about crucial amendments to the PIA Corporation (Conversion) Act of 2016. The amendments came in response to concerns raised by the concerned committee regarding the airline’s financial situation,
Addressing the house, the minister highlighted the adverse impact of disinformation disseminated by a former government minister leading to an annual loss of Rs71 billion.
He emphasized that this misleading statement not only incurred severe financial losses for the national exchequer but also negatively affected Pakistani pilots employed by international airlines such as Emirates.
Revealing alarming figures, Dar stated that out of the total loss of Rs71 billion experienced by PIA, a substantial portion of Rs59 billion was attributed to revenue generated from the United Kingdom (UK).
He underscored the efforts of the current government to revitalize the national flag carrier and align it with international aviation safety and regulatory standards.
Dar empathetically acknowledged the challenges faced by the Pakistani diaspora, especially those residing in the UK, due to the suspension of national flights.
He emphasized that the government had been repeatedly urged to find a resolution, as travelers had to bear additional expenses and inconvenience due to multiple transit flights.
With the amendment now in place, he said the relevant authorities were set to visit Pakistan in August, raising hopes for the resumption of PIA flights by October this year.
Highlighting the financial state of PIA, Dar shared that the total liability of the airline amounted to Rs743 billion, which included significant bank loans totaling Rs383 billion.
He pointed out that the government had provided a sovereign guarantee, obliging it to pay Rs262 billion in case of default by the institution.
Furthermore, the PIA was burdened with outstanding dues to the tune of Rs.360 billion to entities like the Pakistan State Oil, Federal Board of Revenue, and Civil Aviation Authority, he maintained. The minister expressed concern that the PIA was projected to incur a loss of Rs 110 billion this year.
He warned that if the airline continued its operations for seven more years, its liabilities could balloon to an astonishing Rs1973 billion.
In a reassuring announcement, he stated that the privatization of PIA would not result in the termination of any employee’s service. He said the airline employed around 7,900 individuals.
During the session, Senator Hidayatullah, Chairman of the Standing Committee on Aviation, presented a comprehensive report on the bill, highlighting the committee’s findings and recommendations.
Senator Saleem Mandviwala emphasized the absence of fake pilots in Pakistan, and Senator Yousuf Raza Gillani called for strict penalties against those responsible for causing significant financial losses and damaging the national reputation on the globe.
