Non-allocation of funds increases PIA deficit, committee told

ISLAMABAD - Seeking for financial support, Pakistan International Airlines (PIA) Friday informed the Cabinet Committee that the government has not been allocating any fund for the airline since 2009 that increased their budget deficit. The Managing Director of PIA Mohammad Aijaz Haroon and Secretary for Defence Lt. Gen. (retired) Syed Athar Ali conveyed the message to the committee, which met here under the chairmanship of Federal Minister for Finance and Economic Affairs Abdul Hafeez Shaikh. Briefing the committee on re-structuring of PIA, the managing director gave a detailed presentation on the financial summary during period 2001 to 2010, which include operational expenses, revenue earning, affects of the increase in oil prices, excessive employment, the devaluation of Pakistani currency in capital market, and its impact on the overall financial conditions of the airline. He also highlighted requirements of the PIA in terms of financial support, as the airline is not getting any fund from the government.

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