PIA owes Rs96bn to CAA, PAC body told

ISLAMABAD: The Civil Aviation Authority (CAA) secretary on Thursday informed the sub-committee of Public Accounts Committee (PAC) that the Pakistan International Airlines (PIA) owed Rs 96 billion to the CAA.

The sub-committee, met here with Senator Sherry Rahman in the chair, reviewed CAA's audit of 2014-15 conducted by the Auditor General of Pakistan (AGP).

Sherry Rehman at the outset of proceedings, said she would move a bill in the parliament to stop awarding supplementary grants to the departments after consumption their budget. She also directed the CAA to hold meetings of its Departmental Accounts Committee and present the report in that regard before the committee.

The audit officials informed the committee that cargo aeroplanes of US Air Force, North Atlantic Treaty Organization, coalition forces and other foreign missions used Pakistani airports without paying any dues to the CAA. The PIA owed Rs 6 billion to the CAA on that account.

The CAA officials could not satisfy the committee when asked as to why charges on account of airports' utilization were not being paid to the Authority. The committee decided to seek the viewpoint of Foreign Service on the matter.

The Secretary Aviation told the committee that the Federal Cabinet was working to make the PIA a profit earning organization, therefore, it had deferred the payment of Rs 96 billion to the CAA, which the PIA would pay on becoming a profitable airline.

Sherry Rehman directed the Secretary Aviation to recover due from from other payees.