Pakistan International Airlines (PIA) incurred a revenue loss of Rs 9 billion during the 2011-16 period due to the issuance of free and discounted tickets, according to the 2024-25 audit report released by the Auditor General of Pakistan.
According to reports, the special audit of Pakistan International Airlines Corporation Limited (PIACL) reveals that a total of 190,724 discounted tickets were issued over six years, with discounts ranging from 25% to 95%. The majority of these tickets, 116,273, were offered at a 95% discount to non-employee passengers on both domestic and international routes. Only 5% of the ticket fare was charged for these bookings.
This discounting led to a revenue loss of Rs 3.5 billion. The audit report states that these fare concessions were issued without approval from the Chairman or Managing Director, indicating a lack of oversight and accountability within the management.
Between 2008 and 2017, PIA also provided 258,990 free tickets to passengers, totaling a loss of Rs 5.55 billion. The practice of issuing free tickets to passengers, other than employees, has been flagged as a breach of financial prudence, misuse of discretionary powers, and a failure in internal controls.
The audit report also highlights concerns over transparency and accountability, as no necessary approvals were obtained for these discounted and free tickets, undermining established policies and procedures.
Despite several requests from the audit office between 2018 and 2023, the matter was not fully addressed, with the Departmental Accounts Committee (DAC) failing to convene the required meetings to finalize the report.
PIA’s failure to maintain proper checks and balances and its disregard for corporate financial health has raised alarms regarding its governance and management practices.
I have written on this topic for years. PIA, WAPDA, Railways, and a few other departments can never, I repeat never, prosper and contribute to the national exchequer till free lunches for their employees, relatives and acquaintances are stopped permanently. What is now happening in the said departments is called CORRUPTION.