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| January 4, 2006 | Wednesday | Zilhaj 3, 1426 |
‘Kirmani was given Rs1.2m reward by PSO’
ISLAMABAD, Jan 3: A spokesman for the Pakistan International Airlines (PIA) has said a reward of Rs1.2 million was given to PIA Chairman and Chief Executive Tariq Kirmani by the Pakistan State Oil (PSO) and not PIA.
The spokesman stated this with reference to a news item “Over 1.2 million paid to PIA chief as reward”, published on December 31 which was based on a written reply made by Defence Minister Rao Sikandar Iqbal in the Senate on December 30.
In a clarification issued on Tuesday, the PIA spokesman said: “We wish to clarify that the award given to the PIA chairman and the CEO Tariq Kirmani was given to him by the board of management of the PSO when he was heading the organization, and not by PIA.” Further, the spokesman said, it may be pointed out that the PIA chairman and the CEO was serving with PIA on the same terms and conditions to which he was entitled in the PSO.
“Visits to foreign cities, where PIA network operates, by Mr Kirmani as head of the airline is a part of his job, which is typical of the CEO of any airline. Mr Kirmani’s visits to Milan, Rome and Frankfurt were as part of the prime minister’s entourage when the latter went to these cities, the spokesman added.
It also needs to be clarified that there has already been extensive and repeated coverage, in both the print and electronic media, besides at the federal government level, that the losses suffered by PIA in 2005 were only due to one factor and that was exorbitant and uncontrollable price of fuel which went up as high as $70 a barrel in the autumn of 2005.
While PIA’s 2004 operating results (without the extraordinary adjustment) indicated a loss of Rs54 million, the comparative figure for the year 2005 shows a profit of Rs3.6 bullion, using 2004 constant fuel prices. with the increase in global oil prices, PIA’s fuel bill has gone up from Rs17.9 billion to Rs26.5 billion in 2005, which has neutralized the gains.—PR
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