ISLAMABAD - The Public Accounts Committee (PAC) was informed yesterday that the volume of loans on PIA reached Rs180 billion in five years.

The committee, chaired by Syed Khursheed Shah, reviewed the five-year audit objection of Civil Aviation Authority (CAA).

Audit officials informed the committee, five ATRs purchased on lease may further cause a loss of Rs2 billion in eight years. The Chairman PAC expressed displeasure over the non-attendance of Chairman PIA, as he was busy in hearing of a case in Lahore High Court (LHC). “Why officials are not prepared to give briefing on aircrafts purchased on lease,” Shah asked from officials of CAA. Terming it injustice to give routes to different private airlines, he said this decision is causing a loss to national exchequer. It was recommended to devise a proper mechanism for reducing loses.

The PIA officials briefed the committee the airline will incur a loss of Rs30 billion. “PIA is facing lose due to different factors including unnecessary competition,” he said.

The committee was also briefed about the strategy to deal with fast increasing losses to PIA. They said fleet expansion, route rationalization and system automation can help bridging the loss.

Sharing a strategy to deal with these losses, they said PIA would follow financial discipline and debt restructuring to manage the loss to national flag carrier (PIA). It was also informed that products and services of PIA would further increase. The committee expressed concern over the financial loses to the national kitty and decided to conduct meeting on monthly basis with the officials of PIA.

The parliamentary accountability body (PAC) members suggested that loses of PIA could be reduced by making a proper mechanism. A suggestion was also floated to increase aircrafts to enhance quality of air travel.

Sheikh Rashid, a PAC member, asked for not reviving the flight of Barcelona. The PIA officials responded that the flights of Barcelona would revive from 11 December.

The PAC meeting attended was attended by MNAs including Raja Muhammad Javed Ikhlas, Dr. Darshan, Muhammad Junaid Anwar Chaudhry, Rana Afzal Hussain, Abdul Rashid Godil, Dr. Khalid Maqbool Siddiqui, Sheikh Rasheed Ahmed and Mahmood Khan Achakzai.