PESHAWAR – Pakistan International Airlines (PIA) has reported a remarkable financial recovery, posting an operating profit of 9.3bn rupees for PIA profit in fiscal year 2024. This marks a major achievement for the struggling airline, as it also recorded a net profit of 26.2bn rupees—its first in over 21 years.
Defence and Aviation Minister Khawaja Muhammad Asif revealed that PIA profit in fiscal year 2024 was the result of careful restructuring and operational reforms. For the first time in over two decades, the airline not only achieved an operating profit of 9.3bn rupees but also earned a net profit of 26.2bn rupees, signalling a major financial turnaround.
“By streamlining routes, optimizing workforce numbers, and enforcing strict financial discipline, PIA has returned to profitability,” Asif explained. He added that the carrier’s restructuring efforts had helped reduce costs while enhancing its revenue-generating potential. PIA profit in fiscal year 2024 aligns with the government’s broader economic reforms aimed at improving the country’s aviation sector.
The airline’s progress is particularly notable in light of its historical financial challenges. Over the years, PIA has faced immense debt and operational inefficiencies. However, with the new management’s strategic direction and oversight from the government, these reforms have helped pave the way for a more sustainable future.
Meanwhile, the second attempt to privatize the national airline is all set, with several returning bidders and stakeholders participating in the process.
The National Assembly’s Standing Committee on Privatization met under the chairmanship of Farooq Sattar and was informed that in the previous round, bidders had recommended waiving the 18 percent GST imposed by the government on the induction of new aircraft and fleet expansion, believing that removing this tax would facilitate the acquisition of new aircraft.
PIA’s liabilities are 45bn rupees, of which 26bn rupees are tax liabilities to the Federal Board of Revenue, 10bn rupees are due to the Civil Aviation Authority, and the remaining amount consists of pension liabilities. The International Monetary Fund agreed that if PIA is privatized, 18 percent GST can be removed to encourage private sector investment in new aircraft.
The committee was further informed that non-core assets are not part of the bidding process for PIA. The government is formulating a separate policy for these assets, for which the consultant has suggested two to three options to the Cabinet Committee on Privatization.
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