Karachi, July 19, 2019: Pakistan International Airline Corporation Limited (PIAC) has suffered a loss of over Rs 47 billion during the calendar year 2017 I(CY17).
PIAC on Friday released its financial results for 2017 after a delay of almost 18 months. According to the financial statement, PIAC losses recorded an increase of almost 7 percent during 2017.
PIAC losses surged to Rs 47.73 billion in CY17 compared to R 44.75 billion loss in 2016, depicting an increase of Rs 2.98 billion in a year.
Loans substantially increase the financing cost of the national airline. Financing cost was surged by 16 percent or Rs 2 billion to stood at Rs 15.7 billion in 2017 vs Rs 13.58 billion in 2016.
The national airline has also posted an exchange loss of Rs 2.2 billion in CY17 as against Rs 298 million in CY16.
The revenue of PIAC slightly increased from Rs 102 billion in 2016 to Rs 104 billion in CY17. Fuel cost trimmed the overall revenues. Fuel cost in 2017 amounted to Rs 30.94 billion vs Rs 27.152 billion in 2016.
The national carrier has also paid a tax of Rs 871 million in CY17 compared to Rs 105 million in CY16. According to an announcement, the second meeting of the shareholders of PIAC will be held on August 24, 2019, at hotel Ramada near Airport Karachi.
The meeting will adopt the audited accounts for the year ended December 31, 2017 together with Auditors and Directors reports. The appointment of the external auditor and it’s remuneration.
The main agenda of the shareholders meeting is approval of acquisition of Pakistan Airways Limited.
The resolution “Resolved that as per prior approval of Prime Minister of Pakistan, PIAC is empowered and authorized to acquire Pakistan Airways Limited by way of purchase of all of its shares including full management control as its subsidiary”, will be presented in the annual general meeting for appropriate approval of shareholders.
Pakistan International Airlines Corporation Limited (PIACL) incorporated as Company Limited by shares with company registration office Karachi on December 04, 2015. Pakistan International Airlines Corporation Limited is to be governed by the Companies Ordinance, 1984 as well as Public Sector Companies (Corporate Governance) Rules, 2013. Being listed on the Pakistan Stock Exchange (PSX), the listing regulations/ PSX rule book is also applicable.
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It may be mentioned here that Pakistan International Airlines Corporation (PIAC) has been converted via Pakistan International Airlines Corporation (Conversion) Act, 2016 (Act No. XV of 2016), dated 19 April 2016 from a statutory corporation to a company governed by the Companies Ordinance, 1984. The new entity is called Pakistan International Airlines Corporation Limited (PIACL).
Through the PIAC (Conversion) Act, 2016, PIACL has succeeded to all the assets, liabilities, duties and obligations of PIAC. Similarly, PIACL is now entitled to the benefits of all notifications, licenses, permissions, sanctions, authorizations, concessions, decrees, international air service authorizations, agreements, orders and benefits issued or granted in favor of PIAC.
All employees of every grade and category of PIAC are hereby assured that they stand transferred by the PIAC (Conversion) Act, 2016 to PIACL with the same designation and on the same terms and conditions as they held in PIAC.