Over Rs200bn lost, reputation dented, pilots jobless but no one punished

ISLAMABAD: Pakistan International Airlines (PIA) suffered a loss of more than Rs200 billion as a direct consequence of an irresponsible statement made by a federal minister of the Pakistan Tehreek-e-Insaf (PTI) government in 2020, who claimed that a large number of PIA pilots held fake licences.

According to sources in the Ministry of Defence, the fallouts of the irresponsible statement -- which led to immediate ban of PIA flights in UK, Europe and US -- was enormous.

The sources explained that PIA suffered an estimated revenue loss exceeding Rs200 billion; profit losses alone were at least Rs12.7 billion; a large number of Pakistani pilots working abroad lost jobs or were indefinitely suspended; insurance premiums and operational costs soared, as Pakistan’s international aviation risk rating deteriorated. Also, the credibility of Civil Aviation Authority (CAA) was severely compromised in the eyes of global regulators.

“It was a textbook case of mishandling a sensitive national issue on a global stage,” said a senior official familiar with the matter. However, despite the scale of the damage, no one has been held accountable as yet. The inquiry promised by the government was never made public, and no action has been taken against those responsible for the sweeping but widely questioned allegations.

Following the European Union, the United Kingdom has now lifted its four-year ban on PIA -- a move widely welcomed as a positive step towards restoring the national carrier’s global standing.

With the reopening of these key international corridors, PIA is also expected to fetch a better price in the government’s ongoing privatisation process, as its access to European and UK markets enhances its commercial value and credibility among potential investors.

But as the airline prepares to re-enter some of its most profitable routes, the staggering financial and reputational losses Pakistan incurred due to the so-called “fake pilot licence” scandal continue to raise troubling questions, foremost among them who was held accountable?

The crisis erupted in June 2020, when then Aviation Minister Ghulam Sarwar Khan told the National Assembly that a significant number of Pakistani pilots were flying with “fake” or suspicious licences. The statement made without context, verification or a completed inquiry triggered an immediate and damaging global backlash. Aviation regulators in the UK, EU, US, and elsewhere swiftly banned PIA, citing safety and regulatory credibility concerns.