ECC approves Rs17 billion support package for PIA

ISLAMABAD: The Economic Coordination Committee (ECC) on Monday approved a financial support package worth over Rs17 billion for the loss-making national entity Pakistan International Airlines (PIA).

The approval came during a meeting of the ECC with Finance Minister Asad Umar in the chair

The PIA is facing financial crunch and despite several bailout packages, the airlines has been unable to stand on its feet.

On Oct 31, the Board of Privatisation Commission decided to remove Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) from the list of entities on the privatisation agenda set by the previous government.

Earlier, Federal Information Minister Fawad Chaudhry had said: “PIA is in a debt of Rs 406 billion,”, adding, the new chairman of the national carrier has been directed to “immediately fix the institution’s economic condition.”

The Auditor General of Pakistan (AGP) on October 2, submitted his report about PIA’s audit carried out on the orders of the apex court.

“The Pakistan International Airlines (PIA) has been run like a non-business entity, governed by an unprofessional Board of Directors (BoD) managed by a chief executive office (CEO) lacking industry specific experience,” says a special audit report on the 10-year performance of the national flag carrier.

The special audit was conducted from the month of July to September. It revealed that the accumulated loss as of Dec 31, 2008 was Rs 72.353 billion which increased to Rs 360.117 billion by Dec 31, 2017.