Pakistan International Airlines (PIA) incurred a loss exceeding Rs200 billion as a result of a 2020 statement made by a federal minister from the Pakistan Tehreek-e-Insaf (PTI) government, which claimed that many of PIA’s pilots held fake licences.
The News reported, citing sources within the Ministry of Defence, that the repercussions of the statement, which led to immediate flight bans in the UK, Europe, and the US, were significant. The losses include an estimated Rs200 billion in revenue, with at least Rs12.7 billion in direct profit losses. Many Pakistani pilots working abroad were either suspended or lost their jobs.
Additionally, the airline faced rising insurance premiums, operational costs, and a decline in Pakistan’s international aviation risk rating. The credibility of the Civil Aviation Authority (CAA) was also undermined by the allegations.
A senior official described the incident as a “textbook case” of mishandling a national issue globally. Despite the scale of the damage, no one has been held accountable, and the promised inquiry has not been made public.
Following the European Union’s decision, the UK lifted its four-year ban on PIA, a step welcomed as it aids the national carrier’s return to global markets. This will likely improve PIA’s standing in the ongoing privatization process, boosting its commercial value.
However, as PIA re-enters some of its most profitable routes, questions still linger about the financial and reputational toll of the so-called “fake pilot licence” scandal. These questions include who will be held accountable for the damage caused.
The crisis began in June 2020 when Aviation Minister Ghulam Sarwar Khan claimed a significant number of pilots were flying with fraudulent or questionable licences, a statement made without verification or a completed inquiry. This led to swift global action, including bans by aviation regulators in major markets.
