Islamabad, July 14, 2025: Pakistan International Airlines (PIA) reported a net loss of Rs. 4.6 billion for 2023, as per the Finance Ministry’s latest State-Owned Enterprises (SOE) report. The airline’s reported Rs. 26 billion profit was purely due to a one-time accounting gain from a Rs. 30 billion deferred tax asset (DTA), not actual earnings.
The Ministry clarified that the DTA is a non-cash adjustment based on future profit assumptions and does not reflect operational success. Excluding the DTA, PIA recorded a pre-tax loss of Rs. 4.58 billion, exposing ongoing financial stress.
In a major restructuring move, the government shifted Rs. 660 billion in legacy debt and non-core assets to a new holding company. This slashed long-term liabilities from Rs. 295 billion to just Rs. 13 billion and reduced finance costs from Rs. 79 billion to Rs. 10 billion.
Despite this relief, operational expenses stayed high at Rs. 106.6 billion. Administrative costs stood at Rs. 8.3 billion and distribution at Rs. 8.2 billion. The airline also suffered Rs. 2.3 billion in exchange losses due to unhedged currency exposure.
Post-restructuring, PIA’s total assets are valued at Rs. 187 billion. Current liabilities fell sharply from Rs. 482 billion to Rs. 142 billion, and non-current liabilities from Rs. 366 billion to Rs. 41 billion.
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The report warns that PIA continues to face solvency risks. It calls for urgent reforms including fleet upgrades, fuel cost hedging, renegotiated vendor contracts, and HR performance restructuring.
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Despite a cleaner balance sheet, the Ministry emphasized that operational recovery is now critical to PIA’s long-term survival.
