CJP summons PIA MD with 10-year audit record

ISLAMABAD: Chief Justice of Pakistan (CJP) Saqib Nisar has summoned the Pakistan International Airlines (PIA) managing director (MD) along with the 10-year audit report of the PIA on April 12.

According to a statement by the Supreme Court on Friday, the chief justice has summoned the PIA chief in person on April 12.

The PIA managing director has been directed to bring with him the 10-year record of the airlines.

According to a Radio Pakistan report on April 1, the Supreme Court took notice of PIA’s decision to give up profitable routes to other airlines and the intended privatisation of the airline.

The court had also reportedly directed that no fresh recruitment shall be made in the PIA.

The privatization of loss-making entities that were draining the exchequer was a key priority for the Pakistan Muslim League-Nawaz (PML-N) when it swept to power in 2013, said a report.

Despite some initial success, the process stalled in 2016 after staff protests caused havoc with PIA operations and the government passed a law that effectively made it impossible to privatize the airline.

The last financial cycle when PIA enjoyed a net profit, amounting Rs2.3 billion, was in the year 2004. Its share price at the end of December 2004 was Rs13.7.

Since then, PIA’s accumulated losses have soared to Rs319.10 billion by the end of March 2017. At the same time, its share price has plummeted to Rs5.31.

Earlier on March 31, the Supreme Court asked the federal government whether there was any intention to privatise the PIA.

The court issued notices to PIA chairman and ministry of defence directing them to submit their respective replies about any intention of the government to privatise the PIA. The court’s order sheet also asked whether certain profitable routes of the national airliner had been given to other airlines, including Airblue.

The court directed the federal government and PIA chairman to ensure submission of their reports within one week and fixed the matter at the principal seat Islamabad in the second week of April.