Pakistan International Airlines (PIA) finds itself in a challenging financial situation, with its total losses projected to exceed a staggering Rs800 billion by the end of the current calendar year. To put this figure into perspective, it would take a full century to repay all its debts and liabilities.
The people in charge of PIA told the Prime Minister that, even though the airline started making some money in the last six months, it’s still weighed down by losses of Rs724 billion. Even if PIA does really well and makes more money than other international airlines, they can only expect to make about 3.5 percent in profit. So, if they earn Rs250 billion in revenue this year, their profit will likely be just Rs8 billion. That means it would still take them 100 years to pay off their Rs800 billion debt.
During the meeting with the Prime Minister, they talked about two options. One was to shut down the airline for good, but that would cause a loss of Rs724 billion to the already struggling economy. The other idea was to split the airline into two separate organizations.
Sources : PSX DATAPORTAL, thenew.pk
