Pakistan International Airlines (PIA) recorded a net loss of Rs. 4.6 billion in 2023, according to the Finance Ministry’s latest State-Owned Enterprises (SOE) report. While the airline reported a one-time accounting profit of Rs. 26 billion, this figure was driven by the recognition of a Rs. 30 billion deferred tax asset (DTA) and does not reflect actual operational profitability.

The Finance Ministry clarified that the DTA is a non-cash adjustment based on projected future taxable income, and therefore should not be interpreted as an indicator of current financial performance. Excluding this adjustment, PIA’s pre-tax loss stood at Rs. 4.58 billion for the year.

As part of a significant restructuring, Rs. 660 billion in legacy debt and non-core assets were transferred to a newly established holding company. This move drastically reduced PIA’s long-term liabilities from Rs. 295 billion to Rs. 13 billion and slashed finance costs from Rs. 79 billion to Rs. 10 billion.

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However, operational costs remain a major burden, totaling Rs. 106.6 billion, which includes Rs. 8.3 billion in administrative expenses and Rs. 8.2 billion in distribution costs. The airline also suffered Rs. 2.3 billion in exchange losses due to unhedged foreign currency exposure.

Following the restructuring, PIA’s total assets are valued at Rs. 187 billion. Current liabilities decreased from Rs. 482 billion to Rs. 142 billion, and non-current liabilities from Rs. 366 billion to Rs. 41 billion.

Despite these changes, the report warned that PIA still faces serious solvency risks. It emphasized the need for urgent reforms, such as modernizing the fleet, implementing fuel hedging strategies, renegotiating major costs, and adopting performance-based human resource policies.

The report concluded that operational recovery remains essential for the airline’s long-term sustainability, even after recent restructuring efforts.