PAC Labels PIA’s Rs 650 Billion Debt a ‘Black Hole’ Over Lack of Payment Strategy

Islamabad:The Public Accounts Committee (PAC) has expressed serious concern over the **Pakistan International Airlines Corporation Limited’s (PIACL) Rs 650 billion debt**, terming it a “black hole” due to the **Finance Division’s failure to develop an actionable repayment strategy**.

The observation came during a PAC meeting chaired by **Syed Naveed Qamar**, where **audit reports for the Aviation Division, Ministry of Defence, for FY 2023-24** were reviewed.

**Key Highlights from the Meeting:**

* **Audit Concerns:** Retired Lieutenant General Muhammad Ali briefed PAC members on issues raised in various audit reports. Most of the identified liabilities were transferred to **PIA Holding Company Limited**.

* **Outstanding Liabilities:** Air Vice Marshal Muhammad Amir Hayat, CEO of PIA, informed the committee that the **Finance Division has yet to decide on the liabilities held by the Holding Company**, prompting the PAC chairman to describe these liabilities as a “black hole.”

* **Federal Excise Duty & Taxes:** Audits under the **Federal Excise Duty Act 2005** highlighted that federal excise duty and advance taxes collected from passengers were **not deposited in the government treasury within 45 days**, as required. Delays in timely payments significantly increased liabilities and affected PIA’s liquidity.

* **Liabilities Transfer:** Of the **total Rs 131.5 billion liabilities**, Rs 115 billion had already been transferred to PIA Holding Company under the **Scheme of Arrangement**, while Rs 9 billion remain pending due to legal cases.

* **Recovery Directives:** The PAC directed the PIA administration to **recover Rs 5 billion** of outstanding dues.

* **Disputed Properties:** Two contentious PIA properties, embroiled in disputes between the **federal government and Sindh government**, have also been transferred to the Holding Company. These include:

* **KDA Scheme-I Football Ground** in Karachi
* **Sambara Inn Hotel** in Larkana

The PAC emphasized the need for **strict monitoring, timely payments, and resolution of disputes** to prevent further deterioration of PIA’s financial position.

This latest review underscores **long-standing governance and financial management issues** within Pakistan’s national carrier and the urgent requirement for structured fiscal strategies.