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Tag: PIA

  • Fresh audits of PIA, Pakistan Steel to be conducted for transparency

    Fresh audits of PIA, Pakistan Steel to be conducted for transparency

    KARACHI: The federal government will conduct fresh audit of Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) in order to ensure transparency in state-owned enterprises (SOE).

    The audits would be initiated for improving SOE governance, transparency and efficiency.

    The federal government will make public the outcome of the audits by December 2019, which was agreed by Pakistani authorities with the International Monetary Fund (IMF).

    The have approved the privatization of seven companies based on their good privatization prospects. They will follow best practices regarding the process and conditions of privatization to ensure a successful and transparent outcome.

    The government will sort SOEs into companies for sale, liquidation, or retaining under state ownership. This has to be done by end-September 2020.

    Further the government will submit to parliament a new State-Owned Enterprise Law by end-September 2020 aimed at modernizing and clearly defining the role of the State as owner, regulator, and shareholder of SOEs.

    In this context, the recently established holding company to manage SOEs will follow the required governance and transparency principles in line with international best practices.

    The IMF will provide technical assistance to support the development of this law and to review ownership arrangements with a view to designing an effective ownership model.

    Pakistan has assured the IMF of taking measures for improvement of the economy, which included:

    — Commit to not grant further tax amnesties Continuous

    — Issue licenses for the track-and-trace system for excises on cigarettes end-September 2019

    — Adopt measures to strengthen the effectiveness of the AML/CFT framework to support the country’s efforts to exit end-October 2019 the Financial Action Task Force list of jurisdictions with serious deficiencies

    — Submit to parliament, in consultation with IMF staff, amendments to the State Bank of Pakistan Act to address all end-December 2019 recommendations of the new 2019 Safeguards Assessment Report and the 2016 Technical Assistance Report on Central Bank Law Reform.

    — Notify the FY 2020 electricity tariff schedule as determined by the regulator end-September 2019

    — Prepare a comprehensive circular debt reduction plan in collaboration with international partners (para. 19 MEFP) end-September 2019

    — Submit to parliament amendments to the NEPRA Act to (i) ensure full automaticity of the quarterly tariff end-December 2019 adjustments and (ii) eliminate the gap between the regular annual tariff determination and notification by the government

  • PIA implements business plan to improve financial health

    PIA implements business plan to improve financial health

    ISLAMABAD: Pakistan International Airlines Corporation (PIAC) has implemented strategic business plan to improve its financial health, according to Economic Survey 2018/2019 launched a day earlier.

    It said PIA came into existence in 1955 as Public Sector organization.

    However, in April 2016 it was converted from a statuary organization to a company governed by Companies Act 1984, through Pakistan International Airlines Limited (PIAL conversion) Act 2016.

    At present PIA is passing through a dire financial state. However, the present government is very keen to make itself-reliant.

    Efforts are underway to improve the financial health of the corporation by reducing its losses through various means and modes. Stringent action is being taken against corruption and mismanagement.

    Despite financial constraints and tough and uneven competitive environment, PIACL gave a stable performance during 2018.

    To reduce losses, PIA had to take measures like route rationalization and suspended its loss making routes.

    PIA is in the process of its Strategic Business Plan 2019-23 to improve its performance:

    i. Launching of profitable new routes like Silakot-Sharjha, Lahore-Muscat, Islamabad-Doha and Lahore-Bangkok-Kualalalmpur. These routes are going very strong and economically viable

    ii. More new routes have been started which include; Sialkot-Paris-Barcelona, Peshawar-Sharjha, Peshawar-Al Ain and Multan-Sharjha

    iii. Increasing frequencies and capacity on profitable routes like Jeddah and Madinah coupled with closure of loss making routes like New York, Salalah (Oman), Kuwait, Mumbai

    iv. Stoppage of all officiating and extra allowances given on additional assignments to officials

    v. Ban on overtime allowances in all cadres along with monitoring of flights by senior officials

    vi. Increasing regularity and punctuality of flights by assigning target to be achieved 90 percent

    vii. Improvement in flight services, training of crew and regular monitoring

    viii. Introduction of executive economy class on European and Gulf sectors which are attracting more customers

    ix. Rationalization of fares according to market demand thus helping in increase of seat factor

    x. Delays of flights have been cut down significantly by better planning in engineering, flight operation and ground handling departments

    xi. Special emphasis on cargo business with monitoring of performance, rationalization of cargo fares and more effective liaison with all stakeholders

    The survey said PIA is in process of acquiring new aircraft for its fleet. Presently, a tender has been floated for four narrow body aircrafts according to PPRA rules.

    PIA has submitted its business plan to the federal government and now it is under consideration for approval of Federal Cabinet.

  • FIA summons fashion designers in PIA premier service case

    FIA summons fashion designers in PIA premier service case

    KARACHI: Federal Investigation Agency (FIA) has summoned leading fashion designers in inquiry related to losses to PIA in Premier Service Operations.

    The FIA summoned the fashion designers in connection that PIA had acquired their services for design of ‘PIA Premier Service Uniform’ for its cabin crew.

    The agency said the designers were acquainted with the facts of the enquiry. Therefore, the designers have been asked to record their statements on April 03 and 04.

    The designers are included Noman Ansari, Yasmin Sheikh, Saniya Maskatiya and Pinto Kazmi.

    Sources said that the PIA acquired services of these designers in 2015. The PIA organized a fashion show abroad for the uniforms designed by such designers.

    The sources said that the PIA issued large number for free tickets to members of a local television channel.

  • Govt. decides to end open sky policy: Fawad

    Govt. decides to end open sky policy: Fawad

    ISLAMABAD: The government has decided to end the open sky policy in order to prevent losses to national flag carrier i.e. Pakistan International Airlines (PIA).

    Federal Minster for Information and Broadcasting Chaudhry Fawad Hussain at a press conference after the federal cabinet meeting on Tuesday said that the government had decided to end the country’s open sky policy which proved to be disastrous for PIA.

    Most of the profitable routes were given to international airlines which led to huge loss for PIA, he said.

    All agreements with international airlines would be reviewed, he added.

    He said that the cabinet approved civil aviation policy to pro-actively promote tourism and give boost to aviation industry in the country.

    The decisions made in the cabinet meeting, chaired by Prime Minister Imran Khan.

    He said traveling to the tourist resorts of Pakistan will be facilitated by reducing travel expenditures.

    Fawad said facilities, including reduction in traveling expenses and cuts in taxes, worth Rs3.8 billion would be offered to promote tourism and aviation sector.

    He said the cabinet also discussed to start helicopter and 40-seat plane service to the tourist sites in the country including Gilgit-Baltistan and Swat.

    The purpose for this initiative, was to provide benefits to local aviation industry,” he said, adding that it was necessary to improve travel facilities to the country’s tourist locations to attract elite tourism.

    The minister announced that passenger airlines in Pakistan will be allowed to import aeroplanes which are 18-years-old compared to the previous limit of 12 years while cargo planes up to 30 years old, could be imported.

    New recommendations with regards to aviation also included charges on flight kitchens being abolished, and a recommendation to reduce taxes on domestic routes, he added.

    The minister also announced a special initiative by CAA of paying up to Rs 400,000 in fees for women to attract them for becoming pilots.

  • ECC approves Rs5.6 bn for grounded PIA planes

    ECC approves Rs5.6 bn for grounded PIA planes

    ISLAMABAD: The Economic Coordination Committee of (ECC) the Cabinet on Tuesday approved additional guarantees to Pakistan International Airlines Company Limited (PIACL) of Rs 5.6 billion for repair and maintenance of engines and acquisition of related spare parts for operationalizing grounded planes.

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  • Reform plan for improving financial health of three PSEs

    Reform plan for improving financial health of three PSEs

    ISLAMABAD: The government has launched a reform plan for improving financial health of three major Public Sector Enterprises (PSEs) including Pakistan Steel Mills, Pakistan Railways and Pakistan International Airlines, according to Fiscal Policy Statement 2018/2019 issued by the ministry of finance.

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  • PIA starts monitoring of free tickets

    PIA starts monitoring of free tickets

    KARACHI – Pakistan International Airlines (PIA) has initiated a comprehensive monitoring system for non-revenue passengers and government agency officials traveling on 100 percent free tickets, according to a recent notification issued by the national flag carrier.

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  • PIA starts flight operation on three more routes

    PIA starts flight operation on three more routes

    Karachi – In a bid to enhance air connectivity and offer more options to travelers in the region, Pakistan International Airlines (PIA) is set to commence additional flight operations on three key routes starting next month.

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