LAHORE (April 04 2003) : The 270th meeting of the PIAC board of directors, held here on Thursday with PIAC Chairman Ahmed Saeed in the chair, discussed and approved the annual accounts of the PIAC for 2002.
The national carrier fulfilled its commitment given to the government by making profit of Rs 2.110 billion during the year ending December 31, 2002 after five years of huge losses amounting to more than Rs 12 billion.
According to the financial statements, cash flows from operation witnessed phenomenal increase of 166 percent to 3.371 billion from Rs 1.267 billion despite adverse circumstances created by visa restrictions, reduction in operation to regional/Far East markets due to ban on over-flying of Indian airspace.
The board was apprised that the new marketing strategy contributed in improving cash flows as the available capacity because of reduction in the Far East operation was re-deployed on high yield routes.
Revenue generation was particularly higher on Pak-Toronto and Pak-UK routes.
PIA also planned to increase flights to Manchester and other high yield markets.
Independent auditors in their report observed, “We appreciate that as a result of major efforts, the corporation's financial position this year has improved significantly.”
While presenting the accounts finance director said that this was for the first time in many years that PIA's equity had crossed over to positive.
The total revenue during the year was Rs 43.674 billion, while operational expenditure was Rs 38.097 billion.
Commending management for improved governance of the corporation while maintaining transparency on all vital decisions, especially preparation of financial statements which were out-sourced to Ferguson and Co, the auditors observed that the requirements of the code of corporate governance were adopted and audit committee established by the board has helped in improving financial controls.
Habib Bank President Zakir Hussian said: “We are delighted that the management had taken important decisions to clean up the balance sheet. This will put PIA on strong footings.”
The board passed a resolution lauding the services of the former PIAC chairman Lieutenant General Hamid Nawaz Khan (Retd) in pulling out the national carrier which was on the verge of bankruptcy and total collapse. “His leadership and keen interest took PIA out of woods,” Ahmed Saeed said.
The meeting also congratulated Ahmed Saeed on assumption of the office of PIAC chairman, and hoped that PIA's journey on the road to progress would continue in future.
The internal auditors also observed that the management had initiated the process of aircraft acquisition to replace the corporation's ageing fleet as envisaged in the long-term business plan 2003-2011 approved by the board.
The meeting was attended by Nawid Ahsan, secretary finance, Air Marshal Salim Arshad (Retd), director general CAA, Asad Ali Khan, M.H.K, Khaishgi, Dr Salman Shah Omar Khan Afridi, S. Ali Raza and Zakir Mahmood.