PIA suffered loss of Rs 9.43 billion due to 258,990 free tickets and 190,724 discounted tickets

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An audit report has revealed startling details about Pakistan International Airlines’ (PIA) past practices, showing that the national carrier issued hundreds of thousands of free and heavily discounted tickets, causing a loss of nearly Rs 9.43 billion to the treasury over a span of six years. 

Millions Lost in Free Rides 

According to the findings, between 2011 and 2016, PIA distributed more than 258,000 tickets free of charge and sold an additional 116,000 tickets at discounts as high as 95 percent.

The audit noted that a significant number of these concessions were given to individuals who had no official link to the airline, raising serious concerns about misuse of public resources. 

The breakdown of free tickets issued each year paints a worrying picture: 

• 2011: 58,861 

• 2012: 51,692 

• 2013: 56,815 

• 2014: 43,077 

• 2015: 21,816 

• 2016: 26,729 

The Auditor General of Pakistan criticized the lack of oversight, pointing out that these concessions were granted without formal approval from either the PIA chairman or managing director. Despite repeated reminders, the matter remained unaddressed until it resurfaced in 2023. 

Read more:m Four companies shortlisted for PIA privatisation

Policy Shift After Supreme Court Intervention 

Responding to the audit, a PIA spokesperson clarified that the practice had been stopped in 2018, after getting a Supreme Court order banning the distribution of free tickets. The spokesperson explained that such tickets were originally issued under an agent incentive scheme aimed at boosting sales, but over time, the policy was misused. 

The spokesperson also kept on highlighting that the audit observations are nine years old, emphasizing that any review now falls under the jurisdiction of the relevant ministry and the Departmental Accounts Committee (DAC). They suggested that the renewed emphasis on the issue could be influenced by certain interest groups pushing for accountability or reforms within the airline. 

A Case of Mismanagement 

The revelation is considered to be another case study of how weak oversight and political interference have plagued PIA, once regarded as a reflection of national pride. While reforms have been promised repeatedly, critics kept on criticizing that cases like these clearly depict the huge demand for transparency and stricter governance in state-owned enterprises.