Pakistan International Airlines (PIA) caused a staggering Rs9.43 billion loss to the national treasury in just six years, driven by the distribution of free and heavily discounted tickets, an audit report has revealed.

 

According to the report, between 2011 and 2016, a whopping 258,990 free tickets were issued, while over 116,273 tickets were sold at a 95 percent discount to “non employee passengers” on both domestic and international routes.

 

As per the audit, the average fare was 26,411; however, after the discount, passengers were charged only 1,321.

Details show that in 2011 alone, 58,861 free tickets were issued, while 51,692 were given in 2012. Similarly, 56,815 tickets were distributed in 2013, 43,077 in 2014, 21,816 in 2015, and 26,729 in 2016.

 

The report highlighted that the management failed to obtain approval from the Chairman or Managing Director for the "fare concessions”. Despite repeated reminders, no meeting was convened on the matter until 2023.

 

“Audit recommends immediate withdrawal of the free-ticket policy to prevent misuse and minimize financial losses,” the report reads.

 

According to the findings, the practice of allowing free tickets to passengers other than employees reflects “weaknesses in financial prudence, misuse of discretionary powers, inadequate internal controls and lack of transparency and accountability as the management disregarded the corporation’s financial well-being”.

 

A PIA spokesperson has said that free tickets had been completely discontinued since 2018 after a Supreme Court order, adding that the tickets highlighted in the audit were issued under a sales incentive scheme for travel agents.

 

He further claimed that the audit paragraph was nine years old and was being revived under pressure from certain quarters. “Reviving such an old audit para appears to be an attempt by certain quarters to exert pressure,” the spokesperson added.