PIA’s free rides cost national treasury billions

ISLAMABAD: Pakistan International Airlines (PIA) caused a loss of Rs 9.43 billion to the national treasury in just six years through the distribution of free and heavily discounted tickets, an audit report has revealed.

According to the Auditor General of Pakistan, between 2011 and 2016, more than 258,000 free tickets were issued, while over 116,000 tickets were sold at a 95 percent discount. The report stated that many discounted tickets were given to individuals who were not PIA employees.

The audit findings noted that fare concessions were granted without the mandatory approval of the chairman or managing director. Despite repeated reminders, no meeting was convened on the matter until 2023.

Details show that in 2011 alone, 58,861 free tickets were issued, while 51,692 were given in 2012. Similarly, 56,815 tickets were distributed in 2013, 43,077 in 2014, 21,816 in 2015, and 26,729 in 2016.

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The Auditor General recommended the immediate termination of the free-ticket policy, pointing out that under the rules, only the chairman and MD were authorised to issue complimentary tickets to sports bodies or charitable organisations. However, in this case, approvals were not obtained.

PIA SPOKESPERSON

Reacting to the findings, a PIA spokesperson said that free tickets had been completely discontinued since 2018 following a Supreme Court order.

The spokesperson added that the tickets highlighted in the audit were issued under a sales incentive scheme for travel agents.

He further claimed that the audit paragraph was nine years old and was being revived under pressure from certain quarters.

According to the audit report, the MD was authorised to approve fare concessions up to Rs100,000, while the chairman could approve discounts above that limit.

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A PIA spokesperson said that free tickets have been completely banned since 2018 under Supreme Court order.

The spokesperson added that the tickets were earlier issued to travel agents under an incentive scheme to boost sales.

Calling the audit para outdated, the spokesperson said it was nine years old and was repeatedly discussed in DAC meetings called by the relevant ministry.

“Reviving such an old audit para appears to be an attempt by certain quarters to exert pressure,” the spokesperson said.