SC orders auditor general to complete PIA audit within 10 weeks

E-Paper | June 12, 2026

The Supreme Court on Saturday ordered the auditor general to complete an audit of Pakistan International Airlines' (PIA) accounts within 10 weeks.

A two-member bench of the SC, headed by Chief Justice Saqib Nisar, passed the order while hearing a case concerning the sale of assets belonging to the national flag carrier.

The chief justice noted that PIA's losses have reached Rs360 billion and the government cannot continue to run the airlines on an annual Rs13bn subsidy. He then ordered the auditor general to undergo a comprehensive audit of the airlines.

Former Aviation adviser Mehtab Abbas, however, objected to the audit, saying that a professional auditor would be able to do a better job as the auditor general was not capable of auditing an airline.

The court also ordered the name of another former adviser on Aviation, Shujaat Azeem, to be removed from the Exit Control List (ECL) and said that he must appear before the auditor general if called, warning that his property would be seized in case of failure to comply.

The court also imposed a ban on PIA's re-branding with the picture of the national animal, the markhor, on the tail of its aircraft.

PIA administration blames political influence, unnecessary recruitment for condition of airlines

A report submitted in the SC on behalf of PIA Chief Executive Officer (CEO) Musharraf Rasool had yesterday requested the court to allow the airlines to go ahead with its re-branding as it was integral to a strategy to rebuild the airlines' image and only involved the shifting of Pakistan's flag — not its removal.

The PIA had blamed political influence and unnecessary recruitment, among other factors, for the dilapidated situation of the national flag carrier.

The airline had also recounted the changes brought by the new administration for the smooth running of its operations, uprooting corruption and changing its image.

It stated that PIA's losses had reached Rs406 billion and would require some time to be brought down.

The airline also stated that, since the arrival of the new administration, a number of measures had been taken to improve safety measures which had helped bring its Safety Assessment for Foreign Aircraft (SAFA) index to 1.69 from 2.29 in November last year.

It also mentioned internal efforts to sabotage the transformation, lack of capability at all levels, a recruitment ban imposed by the apex court, excessive litigation in courts, and disruptive intervention of unions as major current challenges preventing an overhaul.

The airline has, therefore, requested the courts to lift the ban on postings, direct members of the Senior Staff Association to refrain from acting against PIA's interests, allow for the re-branding activity and remove the CEO from the Exit Control List (ECL).

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Syed

Jun 30, 2018 02:51pm

The Govt already collects 40% tax on airline tickets... If it just privatizes PIA, Govt will start making money.

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Khawaja

Jun 30, 2018 03:18pm

Re branding is required if people are not buying your brand, however that is not the case with PIA. The argument that PIA has hired a awful number of employees does not appear to be valid because top airlines pay about $ 72, 000 to their flight attendants whereas PIA pays $3,000. Almost same differences exist for mechanics and other professions. PIA fares were also relatively higher than other lower end airlines between Karachi and New York for example. PIA has been like most of the other public sector companies that showed downward trend in profitability and ceased operations, like PICIC, NDFC etc. IN my opinion it has to be corruption on mass scale, like disappearance of an airplane.

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Haal

Jun 30, 2018 03:19pm

10 year audit in 10 weeks. Honourable judges are venturing into areas that they know not !

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Zamir

Jun 30, 2018 03:22pm

10 weeks?? The airline maynot be flying in 10 weeks

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Mind

Jun 30, 2018 03:37pm

Almost all the airlines around the world make losses on longbterm basis. Airlines are usually run on cashflow and the good airlines are generating positive cash flows, which is onlu possible if cost per aeroplane is as small as possible which in case of PIA is exirbitant keeping in view inefficient excessive staff. The only lifeline PIA has is privitization to oversome inefficiency!!

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ABE

Jun 30, 2018 03:53pm

PIA and its continuing red link, political influences and bad service, reputation and dwindling network and destinations should be a source of embarrassment for a nation of 200+ millions. Every gulf nation is a fraction of the size of Pakistan, yet have fledgling, world-renowned airlines to their names. Yes, money and good management has a lot to do with their success. But considering Pakistan actually helped launch airlines like Gulf Air, Emirates and Eitehad Airways should make us reflect and wonder what happened along the way? All the aforementioned are hugely successful with excellent reputation around the world, with rising passenger loads, where as PIA is shrinking by the day, as it keeps mounting losses year after year. One of the primary reason is that half of the passengers flying on PIA are actually staff and families - many of whom do no work for PIA but collect paychecks and perks. Thereby load factor does not generate revenue or profits enough for PIA to sustain itself

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2018

Jun 30, 2018 04:12pm

PIA, has undisputed biggest advantage of direct flights, excellent air crew and hard working customer care. Only if beaurocratic obstacles and vested political interests can be eliminated, we can not only beat Emirates and like airlines, but also add a big chunk of profit to national economy . Recently, in flight entertainment has been initiated which will bring more young travellers and families back to PIA's long haul flights.

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bilquees

Jun 30, 2018 04:18pm

Simple privatisation is not the solution. First the performance of last one decade needs to be analyzed and people at helm of affairs should be held accountable. Why did we surrender the Istanbul route? Just dumping it wont solve problems. People who have profited billions with the loss of PIA will go scot free.

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sid

Jun 30, 2018 04:48pm

whose idea what to change the logo?... Save that money and put it towards brand new planes... You may just attract old customers that way (not by changing a logo).

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Nadeem

Jun 30, 2018 05:23pm

Stop the blaming game,,,, start rebuilding the airline

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Ahsan Gul

Jun 30, 2018 06:24pm

Our new riches for the last 15/20 years as Abbassi, Tarreen internally want PIA to disappear. Abbassi wanted to sell it to outside. These are the Pakistani and PML-N people who are again participating in elections. Full audit and money recovery alongside with long jails time is required to crush any future attempts by our dishonest politicians.

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M. Emad

Jun 30, 2018 06:27pm

PIA is a loss-making airlines.

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Afzaal ansari

Jun 30, 2018 07:24pm

Massive deficit which is irreparable

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Reality bites

Jun 30, 2018 08:04pm

Good job CJP. Actually, you should bring in auditors from one of the big 4 Audit firms to audit the entire government and govt owned companies. Our auditor general office's rep is that great either. I mean where was he sleeping while the country was being looted for last 40 years and same goes for the office of the Attorney General.

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Dr. Salaria, Aamir Ahmad

Jun 30, 2018 09:19pm

What a cruel, silly and brutal joke? Somebody ought to register for "Auditing 101" course at an accredited global University and pass it with a minimum grade of "B" in order to study, taught, read, know, realize and fully understand what auditing as per GAAP standards, codes, specifications and requirements is all about? Even the top accounting and auditing international firms like "Ernest and Young" and others will face gross difficulties and unbelieveable challenges to conduct a fair, free, impartial and accredited audit and auditing of an airline like PIA in 10 weeks.

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Sameer

Jul 01, 2018 01:11am

We the people of Pakistan support this initiative. The SC has our backing to track down all PIA related personal in the last 10-15 yrs and make recoveries.

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TNawaz

Oct 03, 2018 08:26pm

PIA has been robbed by its management. PIA was one of the best airline.

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