The Pakistan Stock Exchange has put Pakistan International Airlines on its default segment and suspended trading of its shares for 90 days with effect from October 10 (today).
According to a PSX notice, PIA hasn’t held the annual general meeting of its shareholders nor submitted its audited annual accounts for two consecutive years, which is a violation of the stock market rules.
After PIA failed to comply with these rules, the PSX suspended trading of its shares and gave the national flag carrier three months to comply. If it fails to do so, the suspension can be extended to another 90 days, the notice reads.
PIA has not paid any dividend to shareholders in the last five years. Its stock rose 4% to close at Rs4.92 per share on October 9, the last time it was traded, with 2.1 million shares changing hands.
Barring a profit in 2008, PIA has been hemorrhaging money since then and is not able to pay its debt or fund its operations. This means it is bankrupt. It relies on bailouts from the government to stay afloat. It reported Rs44 billion in losses during the financial year ending June 2017, taking total losses in the last 10 years to Rs316 billion.