Pakistan International Airlines (PIA), the cash-starved national flag carrier that is embroiled in multiple scandals, owes Civil Aviation Authority (CAA) 49.162 billion rupees as of June 2016.
According to documents available with Pakistan Today, the CAA is suffering a loss of Rs 1.1 billion per month due to non-payment of its dues by PIA.
From year 2012 till 2016, the outstanding dues against PIA increased from 11.965 billion rupees in 2012 to a staggering 49.162 billion in July 2016. Furthermore, CAA is also paying taxes on unrealised amounts from PIA.
CAA, established back in 1982 through Civil Aviation Authority Ordinance, 1982 is entrusted to promote and regulate aviation activities in the country and development of infrastructure for safe, efficient, economical and coordinated Civil Air Transport Service in Pakistan. It is also the supreme regulatory authority that regulates air navigation and airports services.
The two main heads of revenue of CAA are aeronautical and non-aeronautical. With aeronautical services bringing in lion’s share of revenue for authority. In year, 2016 alone, 57.830 billion rupees worth revenue came in year 2016 so far. Back in 2012, CAA bagged 22.117 billion rupees under the same head.
However, non-aeronautical head of revenue showed little improvement as in year 2016, 7.276 billion rupees were earned under this head while revenue of 5.06 billion rupees came through non-aeronautical head back in 2012.
The overall performance of CAA remains exemplary as for the past 5 years the net profit margin has remained 45 per cent on average. At present, the total value of assets belonging to the CAA are valued at 434.49 billion rupees.
Furthermore, in year 2016 alone, 5.9 million rupees under head of embarkation fee, security charges and infrastructure development charges are also due on the PIA.
PIA officials during a presentation to Public Accounts Committee (PAC) on October 24, failed to produce satisfactory answers to many queries. PIA Chairman Azam Sehgal didn’t attend the meeting and said he had a court case to attend.
During the meeting, it was decided that PIA officials will brief standing committee on monthly basis in order to gauge the performance of national flag carrier on regular intervals.
