Print Print edition: 2026-01-08

Public Accounts Committee terms PIA’s Rs650bn debt a ‘black hole’

Published January 8, 2026 Updated January 8, 2026 07:18am

2 min

By Wasim Iqbal

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ISLAMABAD: Describing PIACL’s Rs 650 billion debt as a “black hole,” the Public Accounts Committee (PAC) expressed concern over the Finance Division’s continued inability to develop a viable repayment strategy.

Syed Naveed Qamar chaired the meeting of the PAC which examined the Audit Reports of Ministry of Defence (Aviation Division) for 2023-24.

Lieutenant General Muhammad Ali (retired) briefed members’ committee on audit objections raised in the Audit reports.

He apprised the committee that most of the liabilities highlighted in various audit reports were transferred to PIA Holding Company Limited.

AVM Muhammad Amir Hayat, Chief Executive Officer (PIA) apprised the committee’s members that Finance Division has not reached to any decision on the liabilities of PIA kept in PIA Holding Company Limited. Chairman committee termed the liability a black hole.

According to Federal Excise Duty Act 2005, the audit pointed out federal excise duty and advance tax collected from passengers was required to be deposited into government treasury within 45 days from the date of deduction.

During audit of PIA, finance department for the year 2022, it was observed that the management was not paying off its liabilities timely in respect of taxes and duties payable to the government. The non-payment raised the obligations substantially and also affected its current liquidity position.

The official of Defence Ministry replied that out of the total payables of Rs 131.5 billion, an amount of Rs 115 billion has already been transferred to the Holding Company under the Scheme of Arrangement. In addition, Rs 9 billion has been pending in legal cases. The committee directed the PIA management to recover Rs 5 billion liability.

The committee was further apprised that two disputed property of PIA-football ground KDA Scheme-I, Karsaz Karachi and SambaraInn Hotel Larkana between federal government and Provincial Government of Sindh had been transferred to PIA Holding Company.

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