Khawaja Asif clarifies reports about Rs24 billion bailout package for PIA

The federal government has denied reports of granting a Rs24 billion bailout package to Pakistan International Airlines (PIA), clarifying that the national carrier instead obtained the amount from the Civil Aviation Authority (CAA) as a bridge financing facility.

Responding to questions during the National Assembly session on Wednesday, Defence Minister Khawaja Asif stated that no direct financial assistance had been extended to PIA by the government. “PIA has not received any bailout package of Rs 24 billion from the federal government,” he said. “The amount was taken from CAA in installments as bridge financing.”

The minister disclosed that the airline is currently facing a total loss of Rs720 billion, citing operational failures, outdated aircraft, and soaring fuel prices as major factors behind the crisis. “PIA’s financial reputation was severely damaged after the pilot licence controversy in 2020, and the airline has not yet recovered from that blow,” he added in a written reply to the House.

The remarks came amid growing concern over PIA’s financial sustainability and ongoing discussions about its restructuring and possible privatization.

Legislative Business in the House

The National Assembly session, chaired by Deputy Speaker Syed Ghulam Mustafa Shah, also saw the introduction of several key bills, including the Income Tax (Third Amendment) Bill 2025, the Islamabad Local Government (Second Amendment) Bill 2025, the West Pakistan Motor Vehicle Taxation (Amendment) Bill, and the Public-Private Partnership Authority (Amendment) Bill.

All the bills were presented by Dr. Tariq Fazal Chaudhry, who also informed the House that the Prime Minister has formed a committee—headed by the Interior Minister—to address Islamabad’s water needs for the next 50 years. He said work on the Charah Dam is underway and emphasized the need to construct the Shahdari Dam to meet future water demand.

Political Debate

Earlier in the session, Barrister Gohar Khan voiced opposition to the 27th Constitutional Amendment, describing it as “against the spirit of the Constitution” and urging lawmakers not to “divide the nation further.”

Sanitation and Public Issues

Senator Nuzhat Sadiq raised an attention notice regarding the lack of a sustainable garbage management system in Islamabad. Responding to it, Dr. Tariq Fazal Chaudhry said the process of outsourcing solid waste management has begun, and the Capital Development Authority (CDA) aims to complete the project within a year.