Pakistan International Airlines (PIA) has reported profits for the first time in nearly 20 years, marking a major turnaround for the struggling national carrier. However, the government maintains that privatization remains essential due to the airline’s long-standing financial burdens.
Parliamentary Secretary for Defence Zeb Jaffar told the National Assembly on Wednesday that after operating in losses for over two decades, PIA began posting profits in 2022. The airline earned Rs23.4 billion in 2022 and an additional Rs6.8 billion during the first half of 2023, driven by improved operational efficiency and workforce restructuring.
“An organization that remained in deficit for twenty years is now reporting profits,” Jaffar said. “We have rationalized operations to ensure long-term sustainability.”
She noted that PIA had successfully reopened several domestic routes and was performing efficiently on both local and international sectors. “Earlier, the airline operated 32 aircraft, but now it runs effectively with only 17,” she added, crediting optimization measures for the improved performance.
Despite this recovery, Jaffar stressed that privatization had become unavoidable due to heavy accumulated liabilities. “The federal cabinet decided to privatize PIA after thorough consideration of all aspects,” she said, adding that restoring PIA’s credibility within the global aviation community had been one of the government’s toughest challenges.
According to Jaffar, the airline has managed to rebuild its reputation and resume profitable international routes. “Several routes have become profitable again, and PIA has regained its value as a national asset,” she remarked.
Clarifying financial details, Jaffar dismissed claims that PIA received a Rs24 billion bailout package, explaining instead that the amount represented Bridge Financing Facilities obtained from the Pakistan Civil Aviation Authority in different tranches to sustain operations during cash flow constraints.
“As part of the ongoing debt restructuring process, Rs17 billion of this amount has been transferred to PIAHCL, while Rs7 billion remains with PIACL and is still payable,” she informed the House.
The National Assembly Chair referred the matter to the relevant committee on the mover’s request.
