A recent audit by the Auditor General of Pakistan has revealed major financial mismanagement in PIA. The national carrier reportedly lost around Rs. 9 billion due to the issuance of free and heavily discounted tickets over the years.
The report highlights that more than 190,000 tickets were sold at large discounts ranging from 25% to 95% of the actual fare. Shockingly, around 116,000 tickets were sold at just 5% of their price, resulting in huge revenue losses for the already struggling airline.
The audit further uncovered that between 2008 and 2017, PIA also distributed nearly 259,000 free tickets. The value of these complimentary tickets was calculated at Rs. 5.55 billion, creating another dent in the airline’s finances.
Auditors flagged several issues behind these losses, including mismanagement, lack of proper approvals, and poor oversight. They stressed that such practices point to serious weaknesses in the airline’s governance and financial controls.
The findings have raised concerns about transparency and accountability in the management of PIA. Critics say that with the airline already facing mounting debts and operational challenges, such practices have only worsened its financial crisis.
The report recommends that the government and PIA’s top management take urgent steps to improve monitoring, enforce financial discipline, and stop misuse of resources. Without reforms, experts warn, PIA will continue to struggle with losses that could threaten its survival in the long run.
