After suffering huge losses during the past couple of years, Pakistan International Airlines (PIA) finally earned around Rs60 million profit in the first quarter (January-March) of the year 2023, Parliamentary Secretary for Railways Kiran Imran Dar on Friday told the National Assembly.
Replying to a question during the “Question Hour”, she said the PIA was paying Rs60 million markup on financial loans obtained from time to time.
The national flag carrier’s losses decreased during 2020 and 2021 mainly due to COVID-19 outbreak resulting in limited flight operation during 2020 as well as significant steps taken on cost-cutting measures, including a voluntary reduction in employees' salaries, rationalisation capacity and a greater focus on cargo/charter operations during the pandemic, she added.
Dar said the process of decrease in losses could have continued but due to an increase in fuel prices and fluctuation in the dollar exchange rate to the higher side, and an increase in interest rate.
Earlier today, Ministry of Aviation submitted a summary of challenges and re-opening of Roosevelt Hotel, New York, and informed that PIA Investment Limited (PIA-IL) management has got an opportunity offered by the New York City Government to utilise the hotel over a period of three years for migrant business US$ 200 per room per day.
The Economic Coordination Committee (ECC) — after discussion — approved the recommendations of the ministry and gave its nod to the formation of a four-member negotiating committee led by the Secretary Aviation Division to negotiate with the New York City government and the hotel union.
The ECC also allowed PIA-IL/ RHC to utilise the funds of $1.145 million from the available balance as bridge financing to commence the re-opening work at the Hotel.