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PIA Audited Financials to be verified after Fawad Chaudhry Raises Concern

November 2, 2020

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The federal cabinet has instructed to verify the Audited Financial figures of PIA announced by chief executive Arshad Malik during a briefing to federal cabinet on “restructuring PIA.”

Federal Minister of Science and Technology Fuad Hussein Chaudhry has expressed doubts about the figures presented by the CEO of PIA regarding the airline’s revival progress and strategy, according to sources.

Earlier on October 20, he mentioned at a federal cabinet meeting that few figures differ from what Arshad Malik claimed.

According to the details, Arshad Malik claimed that Pakistan Airlines suffered a loss of Rs 31.9 billion this year due to the Covid-19 pandemic, and the company’s total debt is Rs 400 billion with annual interest payments of Rs 24 billion. …

He said that revenue grew 42.5 percent in 2019, bringing total profit of PKR 7.8 billion in eight years, up from a total loss of PKR 19.7 billion in 2018, and an operating loss falling to PKR 7.7 billion rupees in 2019 from 32 billion rupees in the previous year, showing an improvement of 75.9%.

However, PIA was unable to maintain its profits as normal operations were suspended in the first week of March due to the coronavirus pandemic.

“The reasons for the improvement were 82.5% better seats, more passengers, more freight, charter flight services, excess baggage, etc., resulting in revenue of Rs 44 billion,” said PIA CEO, adding. that three planes He was also taken out of production. Activated using PIA’s own resources.

Other factors that have helped to improve the airline’s performance include closing unprofitable routes, adding profit making routes, reducing operating losses by 76 percent through cost-cutting measures, implementing HITIT, which results in savings of $ 10 million per year, and bringing corporate discipline.

The factors that led to PIA’s losses have also been highlighted over the years. These include aging aircraft with poor seating arrangements, lack of an entertainment system, unprofitable flights, staff shortages, union activity and corruption. Loans, commitments, and political interference in the past have also contributed to the loss.

During the pandemic, the PIA lost the Umrah season and a major Hajj operation. Recreational travel has also dropped as flights to Europe have also been suspended due to an investigation into the company’s fake pilot licenses following a major accident in Karachi.

Management has set a revenue target of Rs 194.5 billion and an operating profit target of Rs 0.3 billion. Later, however, he revised its revenue target to Rs 94.5 billion and an expected operating loss of Rs 31.9 billion following the Covid-19 outbreak.

Following the presentation, the Cabinet of Ministers instructed the Aviation Division to prepare a comprehensive revitalization plan for Pakistan International Airlines and submit it to the Economic Coordination Committee (ECC) for discussion.