ISLAMABAD – Defence Minister Ahmad Mukhtar on Monday informed the Lower House of parliament that the state-run-airliner owed Rs 139,614 million on account of domestic and foreign loans as of November 30, 2010.
In a written statement, the minister said it was a common practice for airlines globally to acquire aircraft fleet on credit or lease (project financing). In line with this practice, the PIA had also financed its acquisition of Boeing 777 fleet, ATR fleet and Airbus A-310 fleet through a mix of loans and finance leases, said the minister.
The corporation paid around Rs 3 billion to its pilots in salaries and allowances during the year 2010. “As of November 30, 2010, the total amount of outstanding fleet loans (project loans) was Rs 71,200 million. Financing against Boeing 777 fleet was obtained in 2004 and onwards whereas financing against ATR fleet was obtained in 2006 and onwards,” he added.
The minister said the Pakistan International Airlines Corporation (PIAC) either obtained loans to acquire aircraft fleet (project financing) or to finance working capital requirements. The defence minister said the government did not intend to sell PIA’s profitable routes and any agreement to that effect without prior approval of the Defence Ministry would have no legal value.
“The government does not intend to sell PIA’s profitable routes and there is no memorandum of understanding between Turkish Airlines and PIA. The PIA cannot enter into any agreement on its own, only the Ministry of Defence can do so,” Mukhtar said.
Rs 26m paid to lawyers: The federal government has paid around Rs 26 million to 20 leading lawyers to defend NRO and the 18th Amendment cases in the SC. In response to a question raised by MNA Nighat Perveen Mir, Law Minister Babar Awan informed the National Assembly that a total of Rs 2,6150,000 were paid to eminent lawyers to defend it the 18th Amendment in various cases.
Rs 5,900,000 was paid to Leader of the Opposition in the Senate Wasim Sajjad for defending the 18th Amendment case in the Supreme Court while KK Agha did not draw any amount being additional attorney general. Sardar Ghazi was paid Rs 1,000,000, Barrister Baachaa Rs 2,000,000, Raja Ibrahim Satti Rs 1,000,000, Masood Chishti Rs 1,500,000, Salahuddin Gandapur Rs700,000, Iftikharul Haq Khan Rs 500,000, Nasrullah Waraich Rs 300,000, Mumtaz Mustafa Rs 1,200,000, Mushtaq Masood Rs 1,000,000, Khurshid Ahmed Sodhi Rs 1,000,000, Iftikhar Ahmed Mian Rs 500,000 and Mehmood A Sheikh AOR was paid Rs 200,000.
For defending the NRO case in the SC, Kamal Azfar was paid Rs 2,500,000, KK Agha was paid Rs 1,000,000, Kamal Azfar was again paid Rs 1,500,000, Masood Chishti was also paid another 1,500,000 and Raja Abdul Ghafoor AOR was paid Rs 150,000.
PIA owes Rs 139,614m in foreign, domestic loans
