PIA incurring Rs 6 billion loss per month, PM Khan told

He also updated PM Imran Khan about the Karachi plane crash.

 

Prime Minister (PM) Imran Khan chaired a meeting to discuss the restructuring and reforming of the Pakistan International Airline (PIA). Aviation Minister Ghulam Sarwar Khan, Advisor to PM on Reforms Dr. Ishrat Hussain, Special Assistant Lt. Gen. (r) Asim Salim Bajwa, Information and Broadcasting Minister Senator Shibli Faraz and other senior officials attended it.

During the meeting, the Chief Executive Officer (CEO) of Pakistan International Airlines (PIA) Air Marshal Arshad Malik shed light on the ongoing financial crisis PIA is facing. He informed the meeting that the national flag-carrier is incurring a loss of around Rs. 6 billion per month.

Arshad Malik provided evidence to the statement by stating that PIA hosts 14,500 employees, whose aggregate yearly salaries constitute a sum of Rs. 24 billion.

He also updated PM Imran Khan about the Karachi plane crash. According to a press release, he apprised the PM about the investigation process, payment of compensation, and handing over the bodies of the deceased victims to their grieving families.

Proposal to improve and restructure

PIA\\’s CEO, Arshad Malik, also put forward his proposal (for the improvement, restructuring, and betterment of the airline) to the PM and other attendees. The plan contained a comprehensive roadmap for the reformation of PIA. According to Malik, implementing the proposed strategy could improve the financial discipline, ensure the effective utilization of assets, and resolve other issues for PIA.

In response, PM Imran Khan addressed the meeting and discussed how the coronavirus pandemic was causing state-owned entities and the population of the country to suffer a monthly loss of billions of rupees. Due to this, the country\\’s economy was seriously declining.

He said that the airline industry all over the world had also been adversely affected.  Thus, every airline organization was reforming its processes, and we should do it too.

In this regard, PM Imran advised PIA\\’s CEO to focus on increasing financial resources via income and enhancing its fleet, while bringing down expenditures that currently accounted for billions of rupees.

He also directed the authorities of PIA to pay special attention to the organizations\\’ domestic and foreign assets. According to him, they could take the burden off the public and create financial resources clearly and transparently if utilized effectively.

PM Imran Khan concluded by stressing that it was imperative to speed up this reforming process.

What are your views on this? Share with us in the comments bar below.

 

  • We can’t do much about it

    This is the case with every airline out there unfortunately.


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