PIA earns profit of Rs 2.83 billion in Q1, 2015

[I FLY HIGH]

When we incur losses we curse government

When we make profit we find excuses and curse government

We Pakistanis would never be happy even if PIA posted a gross profit of 100 billion rupees

u are absolutely right , but the sanity prevails in the end .

 

[Danish saleem]

1.According to typical PTI'er!

a. Law and Order improved because of Army Chief
b. Economy Improved because of Oil Prices
c. Democracy Improved because of Dharna.
d. Cheesiness Investment is a loan.

2.According to typical PMl N worker,

a. Law and order Improved because PM initiative
b. Economy Improved because of Ishaq Dar
c. Democracy is working because of Mian Mohammad Nawaz sharif.
d. China Investing because of Mian Mohammad Nawaz sharif.

and If PTI was in government, then read the Point 2, with the name of Imran khan, and read Point 1, for PML N.

 

[Muhammad Omar]

1.According to typical PTI'er!

a. Law and Order improved because of Army Chief
b. Economy Improved because of Oil Prices
c. Democracy Improved because of Dharna.
d. Cheesiness Investment is a loan.

2.According to typical PMl N worker,

a. Law and order Improved because PM initiative
b. Economy Improved because of Ishaq Dar
c. Democracy is working because of Mian Mohammad Nawaz sharif.
d. China Investing because of Mian Mohammad Nawaz sharif.

and If PTI was in government, then read the Point 2, with the name of Imran khan, and read Point 1, for PML N.

Add PIA slowly improving
Pti'er Due to Oil Prices

Railways Improving
PTI'er Oil Prices and Sick mental Rigged Minister was running Railway....
Horse train pic

 

[Shah01]

and the prices fell all over the world, but due to less fall in pakistan the industrial sector start making less.
the agriculture sector are hitting there head(especially small farmers like my family) as the prices of commodities will fall but oil prices didnt fall. e.g potato price has fallen as international prices are going down but farmers are not making more money as oil isnt going down in pakistan as it should be..

then a disaster strikes you claim it on nature but when a positve turns happen you take the credit yourself!

this govt doing nothing but trying to cover up its total failure in taxation reforms and power sector losses reforms

Oil prices fell everywhere but Pakistan has one of the lowest price of oil (petrol, diesel etc). In Pakistan the prices went from just over a 100 Rs to 70 Rs, that is almost 30% decrease. If I compare this to UK, the price of petrol went from £1.30 to £1.07 and that is about 18% decrease. Government did the right thing to increase the tax on petroleum. Government need to stop subsidizing things (electricity and oil comes to mind).
The agriculture is hit hard due to failed policies and nothing to do with oil price. Last year 1 truck (100 jute bags) were sold for as high as Rs 500k-600k (no farmer was complaining). Farmers should grow crops intelligently. Potato price has fallen due to no exports and more farmers farming potato this year.
Prices of commodities are falling due to bumper crops and no exports (Oil will have some affect on them also).... Wheat is another example. Pakistan even has the stock from 2012-2014 I believe and the new crop has come to the market as well. Same problem here. No Exports.
They haven't even thought of processing these raw materials. Potato can be processed into chips (fried/frozen) and sold as a processed product for a much higher price. Wheat can be processed too and then sold for a better price. I can write a lot more and about many things but I hope people get the idea.
Taxation reforms are not going to happen in a day.... how many of us willingly submit tax returns? Power sector losses are not a quick fix either. The infrastructure needs updating, theft has to go down (who should I blame for the theft? Government or the people?) If everyone paid their bill the price of electricity will go down. Once again the people are partly to blame.

I don't have the financial statement for PIA to hand otherwise we could scrutinize the figures. Public services (i.e. NHS, Education, Security, Judiciary etc) should always be run by government. PIA, Wapda and Railway can be partly privatized and similar model to PTCL can be used to improve things.

 

[ziaulislam]

1.According to typical PTI'er!

a. Law and Order improved because of Army Chief
b. Economy Improved because of Oil Prices
c. Democracy Improved because of Dharna.
d. Cheesiness Investment is a loan.

2.According to typical PMl N worker,

a. Law and order Improved because PM initiative
b. Economy Improved because of Ishaq Dar
c. Democracy is working because of Mian Mohammad Nawaz sharif.
d. China Investing because of Mian Mohammad Nawaz sharif.

and If PTI was in government, then read the Point 2, with the name of Imran khan, and read Point 1, for PML N.

we dont know anything about PTI whether they would have performed worse than PPPP or better than PML N.

however, I dont understand this incredible optimistic views recently, from where i stand i canot call this an improvement when the growth has just gone up by 0.5%, the circular debt has gone up, so as the line losses and even the taxation collection rate has been flat at around 10% of GDP, absolutely no form of any reforms by the government.
the only positive i have seen is the sudden interest by one country thats china and govt IMPORTED coal initiative(pppp was pressing for thar, and most of deals sign now were concluded by them). now any sane person will know that if only one country wants to invest its not because of your good policies but some geo strategic reasons

WE ARE STILL THE SLOWEST GROWING ECONOMY OF SOUTH ASIA AND THE REGION AND ITS PREDICTED TO BE SAME FOR NEXT THREE YEARS
all i see is excessive foreign inflows stabilizing the economy thats all..

 

[Faiez]

nospinningo f facts just one term has been used called "gross operating" which most of us dont know. in other words they are playing with the ignorance of the common folk.

see PIA had gross loss of just 9 billion last year but total loss of 32 billion. gross operating income means only the operating income, it doesn't contains the payments made in buying equipment or paying off interest on loans.

however it is still a start but it was expected because govt had invested millions in new plans

You're right about the gross profit thing. We want to know what the net after tax is. That's what matters. And by the way, buying equipment goes to assets, not expenses.

and the prices fell all over the world, but due to less fall in pakistan the industrial sector start making less.
the agriculture sector are hitting there head(especially small farmers like my family) as the prices of commodities will fall but oil prices didnt fall. e.g potato price has fallen as international prices are going down but farmers are not making more money as oil isnt going down in pakistan as it should be..

then a disaster strikes you claim it on nature but when a positve turns happen you take the credit yourself!

this govt doing nothing but trying to cover up its total failure in taxation reforms and power sector losses reforms

russia had bad crops, so pakistan started exporting potatoes to russia. That raised potatoe prices in pakistan local market. Then everyone started planting potatoes. Then Russia stopped importing, something about the quality control or something...With this supply of potato increased alot and at the same time the demand went straight down. Result is rs. 13/kg for potato on retail all the way from upto rs.80/kg not that long ago.

This has nothing to do with policy, just supply demand economics...

And I agree, gov. is $hit. From price control nonsense to super high tax rates.....They have done nothing to improve the economy.

WE ARE STILL THE SLOWEST GROWING ECONOMY OF SOUTH ASIA AND THE REGION AND ITS PREDICTED TO BE SAME FOR NEXT THREE YEARS

at the same time, tax rates are amongst the highest and tax collection amongst the lowest (no wonder people run away from taxes, they're so Fu*king HIGH !!!).

 

[Shah01]

And I agree, gov. is $hit. From price control nonsense to super high tax rates.....They have done nothing to improve the economy.

at the same time, tax rates are amongst the highest and tax collection amongst the lowest (no wonder people run away from taxes, they're so Fu*king HIGH !!!).

Why do you think the tax rates are the highest in Pakistan? Could you please name the taxes paid (Indirect or direct)?

 

[Faiez]

Why do you think the tax rates are the highest in Pakistan? Could you please name the taxes paid (Indirect or direct)?

Sales Tax - 17%. Too high.
Import Custom Duties - Too high on everything.
Income Taxes - High considering pakistan is a developing country and tax bracket starting at just rs.400,000.
Corporate Taxes - Starting at 25%, then 34% for bigger companies. Again too high.
Capital Gains Tax - It exists. It shouldn't for a developing economy.

Even some/many medium/high income countries don't have such high tax rates.

 

[Yousafzai_M]

PIA and profit? please tell another joke.

 

[Faiez]

PIA and profit? please tell another joke.

Railway and profit.

Want more?

Pak Steel Mills and profit.

 

[Shah01]

Sales Tax - 17%. Too high.
Import Custom Duties - Too high on everything.
Income Taxes - High considering pakistan is a developing country and tax bracket starting at just rs.400,000.
Corporate Taxes - Starting at 25%, then 34% for bigger companies. Again too high.
Capital Gains Tax - It exists. It shouldn't for a developing economy.

Even some/many medium/high income countries don't have such high tax rates.

Well GST is quite in line with other countries. We pay 20% VAT in UK and that is on almost everything.
Import duties are low comparatively but they are there to protect domestic companies. Also to discourage imports and encourage domestic production of various things.
Income Taxes in UK are 20%, 40% and 45% depending on how much one earns plus NI (National Insurance paid on top of this) Tax starts at £10.6k.
Corporate taxes are low comparatively at 20% I think. Then there are accountants who can reduce this to nearly no tax paid in any country....Corporate taxes should be lowered.
CGT is charged at 18% and 28% in UK although in Pakistan I haven't seen it (Maybe I am wrong).
Inheritance Tax is paid at 40% in UK and nothing in Pakistan.
Fuel Duty is indirect tax and it stands at about £0.58 per litre (plus VAT)... (you guys pay less than that for your petrol in total).

One thing to remember is that one has to pay for the services one gets. There is no such thing as free lunch. The government has to balance the books and they only get money from Taxes, Grant/Aid and Loans. The best way would be taxes.

 

[Faiez]

Well GST is quite in line with other countries. We pay 20% VAT in UK and that is on almost everything.
Import duties are low comparatively but they are there to protect domestic companies. Also to discourage imports and encourage domestic production of various things.
Income Taxes in UK are 20%, 40% and 45% depending on how much one earns plus NI (National Insurance paid on top of this) Tax starts at £10.6k.
Corporate taxes are low comparatively at 20% I think. Then there are accountants who can reduce this to nearly no tax paid in any country....Corporate taxes should be lowered.
CGT is charged at 18% and 28% in UK although in Pakistan I haven't seen it (Maybe I am wrong).
Inheritance Tax is paid at 40% in UK and nothing in Pakistan.
Fuel Duty is indirect tax and it stands at about £0.58 per litre (plus VAT)... (you guys pay less than that for your petrol in total).

One thing to remember is that one has to pay for the services one gets. There is no such thing as free lunch. The government has to balance the books and they only get money from Taxes, Grant/Aid and Loans. The best way would be taxes.

UK !!!!!

Seriously, UK and Pakistan is now in same category ?
Compare Pakistan with other developing countries.

Also, I think taxes in UK are waaaaay waaaay too high. And only now am I hearing about the capital gains tax in uk from you....CGT is at an extremely high level if it's at 18% and 28%. Pakistan has if I remember correctly 10% CGT but there are conditions.

As far as accountants being able to lower tax liability...what about the small/medium guys ?

 

[coffee_cup]

When we incur losses we curse government

When we make profit we find excuses and curse government

We Pakistanis would never be happy even if PIA posted a gross profit of 100 billion rupees

I think they should improve service, enforce rules and regulations (end of VIP culture). And increase number of direct flights e.g. from Europe to Pakistan.

And put no extra burden on tax payers. This is all what we care,

 

[NaMaloom]

When we incur losses we curse government

When we make profit we find excuses and curse government

We Pakistanis would never be happy even if PIA posted a gross profit of 100 billion rupees

BECAUSE there is NO TRANSPARENCY. Are you actually naive enough to take PIA's word for it? When there is NO transparency, no matter if its Pakistanis or any other people, they won't believe anything that the government or a corrupt government institution tells them.

 

[Muhammad Omar]

Airbus A-320 joins PIA fleet