Pakistan International Airlines (PIA) has come under scrutiny once again after the Auditor General of Pakistan (AGP) released a report uncovering massive financial losses linked to ticketing practices. The audit revealed that between 2011 and 2016, the airline issued more than 258,000 tickets free of charge and sold another 116,000 tickets at discounts of up to 95 percent, resulting in a staggering Rs9.43 billion loss to the national exchequer.
The report highlighted serious lapses in governance, pointing out that many of the individuals who received these tickets had no professional or official connection to the airline. According to the findings, these concessions were handed out without the approval of PIA’s chairman or managing director, bypassing the airline’s chain of command. Despite multiple reminders and concerns raised, the matter was not formally addressed by PIA management until 2023. The AGP report recommended the immediate discontinuation of the free ticket policy, citing the practice as unsustainable and detrimental to the airline’s already fragile financial position.
PIA, however, responded by clarifying that the policy in question was discontinued in 2018 following a directive from the Supreme Court. A spokesperson for the airline explained that the tickets had originally been part of an agent incentive program, designed to increase sales and strengthen the carrier’s market presence during a time of financial stress. They emphasized that the audit’s findings are based on practices from nearly a decade ago, which have since been phased out.
The spokesperson further noted that the audit observations are currently under review by the Departmental Accounts Committee within the relevant ministry. They also suggested that the timing of renewed focus on the report may be linked to external pressures from certain interest groups seeking to spotlight PIA’s financial struggles.
The revelations underscore longstanding concerns about PIA’s financial management and governance. For years, the national carrier has struggled with mounting debts, operational inefficiencies, and questions of accountability. The Rs9.43 billion in losses tied to free and discounted tickets adds another layer to the challenges the airline faces as it works to restore credibility and financial stability.
Industry observers argue that such practices not only undermine revenue generation but also erode public trust in state-owned enterprises. With PIA undergoing restructuring efforts and continued calls for privatization or partial divestment, the findings of the AGP report are expected to spark further debate on reforms in the aviation sector.
As Pakistan’s aviation landscape evolves, the focus will likely remain on accountability and transparency within PIA. Analysts believe that only through consistent governance, tighter oversight, and effective reforms can the airline regain its financial footing and rebuild its reputation.
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