Government gave PIA Rs3bn to help overcome losses: Mukhtar

ISLAMABAD: Defence Minister Chaudhry Ahmed Mukhtar on Monday said that the government had provided Rs3 billion to Pakistan International Airlines (PIA) to overcome its losses.

The minister while winding up debate on the overall performance of PIA in Senate, however, said that PIA management was helpless to redress most of the problems being faced by the national flag carrier due to lack of funds. He said the management solely could not be blamed for the crisis being faced by the airline.

He said that the government had provided Rs3 billion to PIA to overcome its losses.

Mukhtar said that despite all the problems the PIA was functioning. The senators severely criticized the PIA management for its inability to recover the national flag carrier from the existing crisis and also blamed the government's corruption and favoritism as the major contributors to the deteriorating condition of the airline.

In response to the demand by JUI-F senator Haji Ghulam Ali, who asked the Minister to resign for his failure to turnaround the airline, Mukhtar said that he was ready to quit if the PIA will turnaround with the change of his slot. "I am ready to quit, but let me know if it will improve the performance of the PIA," he questioned.

He said it is a fact the airline was suffering losses because most of its planes are out-dated and fuel prices have also gone up. However, he told the House that the government had been requested to allow the management to acquire new planes on lease, which would help overcome some of its losses. He said in this way the PIA could gradually be turned into a profit earning entity.

Referring to the agreement with Turkish airlines, he said that it was a good deal to be done for the betterment of the PIA, but regretted that it was politicized.

In response to the allegations leveled by PML-N's senator Mushahidullah Khan, the minister clarified that PIA Deputy Managing Director was getting $10,000 per month.

He said the reconstructing committee formed by the prime minister was looking into the PIA matters. However‚ he said they cannot implement the reconstructing plan until approve by the Ministry of Finance.

Earlier, the senators lashed out at the government for its failure to recover the PIA from the losses and called for immediate measures to help recover the national flag carrier from the current crisis like situation.

PML-N Mushahidullah held the rulers responsible for the rapid decline in PIA performance, saying that there were no service rules and merit in the airline

He also criticized the present MD PIA, who, he said, was even unable to run a primary school, but alleged that he was appointed to the slot just because he was a close aide of President Asif Ali Zardari.

He also alleged that PIA Deputy Managing Director was getting a salary package of $30,000 per month and allowances were over and above the monthly package.

MQM's Tahir Hussain Mashhadi said the national airline needs new planes to compete with other airlines of the world. He suggested that professional persons should be appointed to run the airline.

JI's Prof. Khurshid Ahmad said PIA was in crisis for the last many years and the government has not realized the urgency of the situation.

ANP's Haji Adeel said a major operation was needed to improve the performance of major national entities. He, however, alleged that Karachi-based mafia has occupied the national flag carrier.

Leader of the Opposition Maulana Abdul Ghafoor Haideri said PIA was constantly facing deficit and needed the attention of the government. Earlier, two private member bills were introduced in the House, which were referred to the concerned Standing Committees.

Tariq Azeem Khan introduced "The Regulation of Foreign Contribution Bill‚ 2012" which provides for consolidating the law to regulate acceptance and utilization of foreign contribution by Non-Governmental Organizations.

Sabir Ali Baloch introduced "The Legal Practitioners and Bar Councils (Amendment) Bill‚ 2011". Senator Saeeda Iqbal on behalf of the Senate Standing Committee on Cabinet Secretariat and Inter-Provincial Coordination, presented report of the Committee on "The Right to Free and Compulsory Education Bill‚ 2011" aims at providing free and compulsory education to all children from five to 16 years of age.