To recover from financial ruins, PIA needs a make-over

A high power committee of national assembly, on Friday, agreed that a new business plan is necessary to rehabilitate Pakistan International Airlines which may include replacing aging fleet and adding profitable routes.

Begum Ishrat Ashraf, Chairperson of the sub committee of the National Assembly’s standing committee, will lead the endeavor to develop a new business plan within two weeks to rescue PIA from financial ruins. Plan may include purchasing new planes to replace the ones too old fly anymore.

She declared that PIA would not be privatized and there will be no downsizing. PIA has more employees than justified by its revenue but no employee will be laid-off, she added.

Chairperson Begum Ishrat Ashraf told the sub-committee that the previous regime of Gen. Pervez Musharaf and Shaukat Aziz was responsible for the financial crisis of PIA. She blamed the policies of previous regime for the shortfall of Rs 5.9 billion PIA suffered last year. For the current year PIA’s deficit is lower than the previous year.

While speaking to the press Begum Ishrat emphasized the need of a new action plan to reduce PIA’s financial debts, adding that public will be informed of the poor policies of the previous government that has drowned the national airline in huge deficit.

She also recommended replacing the old planes with new planes saying that the state bank of Pakistan will be contacted to cut down the current rate of interest.

Managing Director of PIA Ejaz Haroon said that all agreements would be reviewed to ensure that revenue of PIA is doubled in next four years while taking concrete steps to slash its deficits. Ejaz informed that PIA has not asked the government for any assistance.