Defence Minister Khawaja Asif informed the National Assembly that Pakistan International Airlines (PIA) has initiated a financial restructuring process to address its ongoing business losses. The restructuring includes removing Rs268.7 billion in bank debt, Rs170 billion in government debt, Rs188.3 billion in legacy operating liabilities, and Rs44 billion in employee liabilities from its financial records, along with non-core assets valued at Rs26 billion.
As a result, PIA’s negative equity has been reduced from Rs698 billion to Rs45 billion as of April 2024. The minister stated that the restructuring has significantly lowered the airline’s debt servicing burden, which previously accounted for one-third of its cash inflow.
The defence minister added that PIA has been operating on a recovery plan since 2023 and is expected to become profitable by 2025, with the ability to fully meet its future obligations.
In a separate response, Asif reported that as of February 2025, PIA’s workforce stands at 7,104 employees, within the approved Human Resources Budget (HRB) of 11,877 set by the airline’s board in 2021. This reflects a 36% reduction in positions, though 1,904 vacancies remain unfilled.
Regarding Gwadar International Airport, Asif informed the house that it became operational on January 20, 2025. However, staff accommodation and related infrastructure are still under development and are expected to be completed by June 2027.
Parliamentary Secretary for Defence Zeb Jaffer added that the airport operates under an open-sky policy to promote international connectivity, with the Civil Aviation Authority (CAA) facilitating airlines for new operations.
She noted that Pakistan International Airlines (PIA) has recently launched flights between Gwadar and Oman, and refueling facilities for international flights are now available at Gwadar International Airport.
Jaffer further informed the house that the upgrade and expansion of Sukkur’s Nusrat Bhutto Airport are in the planning phase, with a project cost of Rs40 billion outlined in the PC-1.
