PIA Spare Parts Loss Reaches Rs 8.56 Billion | PAC Review

Pakistan International Airlines faces a major setback as PIA spare parts loss reaches Rs 8.56 billion due to delays in selling unused aircraft parts.

Pakistan International Airlines (PIA) suffered a total loss of Rs 8.56 billion because it failed to sell spare parts of grounded aircraft on time. Officials shared this information during a Public Accounts Committee (PAC) meeting in Islamabad.

The PAC meeting took place under the chairmanship of Syed Naveed Qamar. Members reviewed the PIA audit report for 2023–24. They also discussed financial issues, privatization plans, and audit objections.

PIA officials told the committee that delays in selling spare parts caused heavy financial damage. They confirmed that spare parts worth Rs 3.8 billion have already been auctioned.

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Officials said PIA has transferred the remaining spare parts to the buyer. They added that six PIA aircraft are currently not fit to fly. The airline has also handed over retired aircraft to buyers, including grounded planes and their parts.

The committee also discussed two PIA properties in Sindh. These properties had pending recoveries of Rs 2.61 billion from the Sindh government. PIA officials said they transferred both properties to the holding company. After this, the PAC settled the related audit objection.

Members reviewed the Defence Ministry’s audit report as well. The report highlighted irregularities of Rs 12 million in procurements made by the Airports Security Force (ASF).

The Defence Secretary accused audit officials of raising unnecessary objections. However, the PAC chairman said such allegations were not suitable for a high-level forum.

The Defence Secretary admitted that pay orders should not have gone into the ASF fund. He assured the committee that such actions would not happen again.

Audit officials said ASF funds were not audited. The Defence Secretary clarified that the ASF Foundation fund does not include public money. The PAC directed the Defence Ministry to seek a legal opinion on this issue.

The committee also examined PIA audit objections worth Rs 167 billion. Audit officials revealed that PIA did not pay Rs 131 billion in taxes and duties.

The Defence Secretary said Rs 115 billion of this amount now falls under the holding company due to privatization plans. He added that PIA’s total liabilities stand at Rs 688 billion and now rest with the holding company.

The PAC chairman questioned how the holding company would manage such huge payments. The Defence Secretary replied that the Finance Ministry has not made a final decision yet.

Committee member Shahida Begum criticized PIA’s financial management. PIA officials responded by saying they have dismissed several officers over financial misconduct.

Audit officials disclosed that grounding eight aircraft caused a loss of Rs 21 billion. Repair timelines ranged from 44 days to as long as 652 days.

PAC members questioned why repairs took such long periods. PIA officials said delays happened during the COVID-19 period. They claimed the extended repairs did not cause extra financial loss.

In conclusion, PIA spare parts loss highlights serious gaps in asset management and financial planning, raising fresh concerns over the airline’s future stability.