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| April 17, 2002 | Wednesday | Safar 3, 142 |
PIAC burdened by accumulated losses
ISLAMABAD, April 16: The accumulated losses of Pakistan International Airline Corporation (PIAC) stood at Rs10,923 million in the year 2000, shooting up from Rs5,669 million in the preceding year 1999, and it owed Rs7,000 million to the Civil Aviation Authority (CAA).
This was revealed during a meeting of the Ad-hoc Public Accounts Committee (PAC) at the Parliament House here on Tuesday. H. U. Baig presided over the meeting.
Reviewing the audit reports/ paras of the PIAC pertaining to the year 1999-2000, the committee was informed that the corporation had suffered an operating loss of Rs903 million in 1999 as against operating profit of Rs3,163 million in 1997-98, while net loss in the same year stood at Rs1,453 million as against net profit of Rs2,271 million in the year 1997-98. The net loss rose to Rs5,146 million to increase the accumulated losses to Rs10,923 million in 2000.
The PIAC has accumulated liabilities of Rs26,724 million with assets of only Rs9,960 million as on Dec 31, 2000, eroding entire equity and becoming a negative worth company.
The PIA management in its briefing to the Chief Executive on Jan 16, 2002, painted a rosy picture showing pleasure on government’s acceding to its demand of providing long-term interest-free subordinated loan of Rs20,000 million, of which Rs4,700 million bridge financing had been arranged with another Rs4,900 million debt restructuring completed. The government also assured TFCs worth up to Rs15,000 million by March this year, the promise that has yet to be fulfilled.
Other measures, like amending the PIAC Act, revision of agreements between the PIAC and the employees, greatly helped the national flag carrier to pick up and resulted in betterment of its financial position and helped it earn a modest profit of Rs303 million in the year 2001.
It also directed the PIAC management to brief the committee in tomorrow’s session about the steps for implementation of the decisions of President Gen Pervez Musharraf pertaining to bridge financing, debt restructuring and improvement plans.
It inquired about the delay in issuance of TFCs which was due to be undertaken before March this year. It also directed the PAO to provide audited accounts of subsidiary companies of the PIAC to Auditor-General of Pakistan within 10 days.
Earlier, the PAC members took serious notice of what was described as indifferent/lethargic attitude of the PIA management as its MD, who was supposed to attend the proceedings, was absent. The committee decided to defer the remaining paras relating to the PIA for Wednesday’s meeting.
Among others who attended the PAC meeting included Lt-Gen Talat Masood, Ahadullah Akmal, Muzaffar Ahmed, M. Hasan Bhutto, S. Shaukat Hussain Kazmi, S. M. Zafarullah and Dr Waseem Azhar, besides high-ups of the office of the Auditor-General of Pakistan, senior officials of the ministry of defence, the CAA and other departments concerned.
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