KARACHI, Sept 2: Pakistan International Airlines or PIA suffered Rs1.87 billion loss during April-June 2005, the profit and loss account of the national flag carrier shows. PIA was trying to keep its losses during April-June quarter within the targeted level of Rs343 million but a sudden jump in its fuel cost increased the actual losses. The airline’s fuel bill shot up to Rs5.479 billion during the fourth quarter of the last fiscal year from the targeted level of Rs4.054 billion. This additional cost of Rs1.425 billion coming in the wake of rising oil prices made it impossible for PIA to keep its losses within the set limits.

The national flag carrier earned Rs13.8 billion revenue during April-June 2005, up Rs152 billion from the target of Rs13.687 billion. But its total operating cost shot up to Rs15.036 billion, up Rs1.654 billion from the target of Rs13.382 billion. Whereas the bulk of the additional expenses came in the shape of additional fuel cost, the national flag carrier also had to spend more than targeted amounts of money on maintenance and catering, etc.

Though on balance, PIA suffered a huge loss of Rs1.87 billion in the final quarter of the last fiscal year, its management kept the direct operating cost in relatively a good shape. The national flag carrier reported Rs11.596 billion worth of direct expenses during April-June 2005, which too was Rs1.336 billion higher than the target of Rs10.26 billion. This reduced its profit minus indirect cost to Rs2.244 billion from the target of Rs3.427 billion. The bulk of indirect expenses of PIA (Rs1.801 billion) were in the shape of salaries and staff-related expenses against the target of Rs1.79 billion. But other indirect expenses also rose past the targeted level of Rs1.332 billion to reach Rs1.639 billion.

RAILWAYS: Pakistan Railways suffered a huge loss of roughly Rs2.122 billion during the last quarter of fiscal year 2005. The state-run organisation’s cash flow statement reveals that during April-June 2005, its losses stood around Rs2.122 billion, slightly higher than the target of Rs1.947 billion.

What contributed to a higher-than targeted loss to Pakistan Railways was that its operating expenses and fuel cost increased during the April-June quarter.

This largest public sector organization in terms of the number of employees reported Rs2.073 billion operating expenses against the target of Rs1.893 billion whereas its petroleum oil and lubricants bill rose to Rs1.061 billion from the targeted level of Rs945 million.

(At the end of June 2005, there were 88,347 employees on the PR payroll).

Pakistan Railways also had to spend Rs1.584 billion on staff salaries against the target of Rs1.497 billion. Besides, it dished out Rs937 million to pay pension to its retired employees, against the target of Rs860 million.

Pakistan Railways incurred a higher-than targeted loss in the final quarter of the last fiscal year despite a handsome increase in its revenue receipts, its accounts reveal. The PR earned Rs4.642 billion revenue during April-June 2005, against the target of Rs3.864 billion.