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ISLAMABAD, Nov 05 (APP): Parliamentary Secretary for Defence Zeb Jaffar on Wednesday informed the National Assembly that Pakistan International Airlines (PIA) had recorded profits for the first time in almost two decades, marking a significant turnaround in its financial performance.
Responding to questions during the session, she said the airline had been operating in deficit for over 20 years but started posting profits in 2022.
According to Zeb Jaffar, PIA earned Rs23.4 billion in 2022 and Rs6.8 billion in the first half of 2023 due to improved operational efficiency and workforce restructuring. “An organization that remained in loss for two decades is now reporting profits. We have rationalized operations to ensure long-term sustainability,” she said.
Highlighting the airline’s progress, she said PIA had reopened several domestic routes and was performing efficiently on both local and international sectors. “Earlier, the airline operated 32 aircraft, but now it runs effectively with only 17,” she added.
Zeb Jaffar said these improvements reflected the government’s commitment to reform and sustainability in the aviation sector.
However, she noted that despite the recovery and improved performance, PIA’s privatization had become necessary due to its heavy liabilities and past setbacks.
She said restoring PIA’s credibility in the international aviation community was a major challenge, but the airline had managed to rebuild its reputation and resume international operations.
“Several routes have become profitable again, and PIA has regained its value as a national asset,” she added.
Zeb Jaffar emphasized that given the airline’s financial burden and accumulated liabilities, privatization was the most practical step for ensuring long-term stability. “The federal cabinet decided to privatize PIA after thorough consideration of all aspects,” she said.
Responding to another question, she clarified that PIACL had not received any Rs24 billion bailout package. Instead, the airline obtained this amount as Bridge Financing Facilities from the Pakistan Civil Aviation Authority in different tranches to maintain operations during severe cash flow constraints.
“As part of the ongoing debt restructuring process, Rs17 billion of this amount has been transferred to PIAHCL, while Rs7 billion remains with PIACL and is still payable,” she explained.
The chair referred the matter to the concerned committee on the mover’s request.