PIA loans now Rs154 billion, says deputy MD

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ISLAMABAD: The National Assembly Standing Committee on Finance and Economic Affairs Tuesday directed the PIA chairman, managing director and Secretary Defence to attend the next meeting of the committee. The committee was chaired by Khawaja Sohail Mansoor.Briefing the committee meeting, PIA Deputy Managing Director Air Vice Marshal Qasim Masood Khan said that the PIA had been indebted with Rs154 billion loans and the losses were incurred by the PIA due to the shortage of aircraft and frequent increase in oil price.

Besides, the losses were not accumulated over night but actually PIA was facing the crisis since 2005, he said adding that all the losses were not caused by the airline only.However, Human Resources rationalization plan will result in the reduction of approximately Rs3.8 billion over a period of 5 years.

Qasim Khan said that maintenance cost was 10 per cent of total earning while 16 per cent was total salary of the employees working with PIA.Moreover, all employees, who were sacked 10 years ago, were reinstated, he added.

Speaking on the occasion, Director General (Debt) Ministry of Finance Masroor Ahmed Qureshi said that PIA should make its strategic business unit and said units should make separation of non-core business activities from airline business through speedex, flight kitchen and ground handling services.

Courtesy: The News

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