National Treasury Faces Rs 9.43 Billion Loss Due to Free and Discounted PIA Tickets Over Six Years
An audit report has revealed that the national treasury incurred a substantial loss of Rs 9.43 billion between 2011 and 2016, caused by the distribution of free and heavily discounted tickets by Pakistan International Airlines (PIA).
Over 258,000 Complimentary Tickets Distributed
During the six-year period, more than 258,000 complimentary tickets were issued, with over 116,000 tickets given at a 95% discount. The yearly breakdown of complimentary tickets distributed is as follows:
- 2011: 58,861 tickets
- 2012: 51,692 tickets
- 2013: 56,815 tickets
- 2014: 43,077 tickets
- 2015: 21,816 tickets
- 2016: 26,729 tickets
Audit Findings: Misuse of Discounted Tickets
The audit highlighted that many discounted tickets were allocated to individuals who were not employees of PIA. Furthermore, discounts were granted without proper authorization from the chairman or managing director, violating internal protocols.
Despite multiple reminders over the years, no official meeting was convened to address these irregularities until 2023.
Recommendation to End Complimentary Ticket Policy
The Auditor General of Pakistan has recommended the immediate termination of the complimentary ticket policy to prevent further financial losses.
PIA’s Response and Policy Changes
A spokesperson for PIA confirmed that free tickets have been completely banned since 2018 following a Supreme Court directive. The complimentary tickets were previously issued as part of an agent motivation program aimed at boosting sales.
Current Status and Oversight
The audit in question is nine years old, but the relevant ministry continues to hold meetings with the Departmental Accounts Committee (DAC) to ensure better oversight.
PIA officials suggest that the increased attention to the audit may be driven by pressure from external organizations, emphasizing the need for improved accountability.
Conclusion
The findings emphasize the importance of strict controls over ticket distribution and transparency in operations to safeguard public funds. The termination of complimentary tickets marks a positive step toward financial discipline within PIA.
