Tag: losses

  • PSL: Traders gear up for daily losses worth around Rs23 billion

    As the Pakistan Cricket Board (PCB) gears up to host Pakistan Super League (PSL) matches in Lahore, traders have said that strict security measures, such as sealing off markets and roads to facilitate the movement of the teams, are being taken by the government, which would ultimately cause a loss of at least Rs23 billion to local businesses every day, Profit reported.

    According to traders and office bearers at Lahore Chamber of Commerce and Industry (LCCI), they are not against cricket matches as these activities “are very encouraging and aid in improving the image of the country”, but the closure of Liberty Market and others in surrounding areas for just one day will cause losses worth around Rs23 billion.

    “We are frequently in contact with the government and are also putting forth proposals to make a long-term strategy that can help the business community and locals,” the reported quoted them as saying during a press conference at LCCI on Tuesday.

    The LCCI president was of the view that revival of international cricket in Pakistan was a healthy sign and would promote a soft image of the country, but economic activities carried equal importance, therefore, the government should make a plan in consultation with all stakeholders to hold sporting events without affecting businesses.

    He maintained that during cricket matches in the recent past, Liberty and other markets, as well as restaurants adjacent to the Gaddafi Stadium, were shut down, resulting in significant losses to businesses, not only to the traders, but also daily wagers.

    The LCCI president said that the business community was ready to cooperate with the government to ensure all necessary security measures during these matches, but they also wanted that adjacent markets and restaurants not be forced to remain shut because, on top of all the losses, it would create the impression that security conditions are not normal yet.

    “A state-of-the-art luxurious hotel should be built as soon as possible within the premises of Gaddafi Stadium Lahore for guest teams because it is the only solution to address all concerns,” he added.

  • PIA suffered losses worth Rs32.7bn in first half of 2019: report

    PIA suffered losses worth Rs32.7bn in first half of 2019: report

    Pakistan International Airline (PIA) and its subsidiary, PIA Investments Limited, continue to bleed massively due to a variety of reasons, ranging from mismanagement to lack of transparency and weak audit controls by independent auditors as well as the auditor general of pakistan, Profit reported.

    According to reports, PIA’s before tax unaudited six-month loss for the period January-June 2019 stands at Rs32.746 billion, which, after taxation, is expected to be in the range of Rs38-39 billion. Although PIA revenue generation in this period has risen by 44pc in terms of Pak Rupee, it does not reflect the actual revenue since almost 55-60pc of its revenue is earned in hard foreign currency through sales at its various international outlets and travel agents.

    Rupee devaluation as compared to 2018 is in the range of approximately 39-40pc, while the cost of fuel has increased by over 19pc. PIA route miles decreased as compared to 2018.

    According to the annual report of PIA for 2018, the national flag carrier registered a total loss of Rs. 59.685 billion. It was the highest ever loss for PIA since the years 2008-2011 when it was headed by Ijaz Haroon and Nadeem Yousafzai, the former MDs who were allegedly involved in financial embezzlements causing losses of billions to the national exchequer.

    Mismanagement, lack of transparency, and weak audit controls remain the underlying reasons that impede PIA in becoming a profitable organization.

    Since 2015, PIA Investments Limited, a subsidiary of PIA, has also registered losses while the senior management continues to enjoy all kinds of perks and bonuses. Dr. Najeeb Samie, the current MD of PIA Investments Limited, was set to retire in 2015. However, because of his connections, Dr. Najeeb managed to receive extensions in his retirement. Dr. Najeeb is a member of the board of directors of HBL and also serves as a director in several tourism entities in France and the USA.

    Perhaps that is why the meetings of the board of directors of PIA Investments Limited have always been held in either New York or Paris and never in Pakistan. Not only is this a violation of rules of PIA Investments Limited but it also prevents the Auditor General of Pakistan to be a part of these meetings. In the meeting of the board of directors, a summary of the accounts in the past 6 months, pricing mechanisms, and quantification of the expenditures of the organization were discussed.

    Moreover, since the days of Ijaz Haroon, unqualified individuals have been appointed as Chief Internal Auditors. The primary requirement for an individual to be installed at this post is that they must be a qualified Chartered Accountant. So far, MBA graduates and audit diploma holders have been chosen to conduct internal audits of the PIA.

    The board of audit hasn’t met in 2019. Audit experts have expressed serious concerns that no meeting of the Audit Board of PIA has been held yet.

    The only positive point in the report is that PIA’s revenue increased by 44% during the first six months of 2019 compared to the same period in 2018. However, nearly 60% of this revenue was earned in foreign currency through international sales. The revenue from January to June was hit by a 40% rupee devaluation and a 19% increase in the cost of fuel in comparison to H1 2018.

  • Railways suffer losses worth over Rs28bn in PTI’s first eight months

    Railways suffer losses worth over Rs28bn in PTI’s first eight months

    In contradiction to Federal Minister for Railways Sheikh Rasheed’s claims, Pakistan Railways (PR) has suffered a loss of Rs28.62 billion within the first eight months of the Pakistan Tehreek-e-Insaf (PTI) government, it was revealed Friday.

    Just last month, Rasheed had claimed that PR has generated a profit of Rs43 billion ever since he was handed the reins of the department.

    However, according to a report submitted to the National Assembly Standing Committee on Railways, the department’s total expenditure stands at Rs72 billion, while six of the 10 new trains inaugurated by Rasheed are suffering losses.

    The trains running to further ruin the crippling department include Dhabeji Express, Shah Latif Express, Mohenjodaro Express, Rohi Passenger Train, Thal-Mianwali Express, Faisalabad Non-Stop Train and Rawalpindi Express.