Evaluating Corporate Governance in Pakistan International Airlines Corporation Limited

Abstract

Aim of this study is to explore how corporate governance impacts performance of public sector organizations in Pakistan in particular PIACL. Study was carried out by conducting twenty in-depth interviews from the key informants in PIACL to find out factors behind unsatisfactory performance of national flag carrier using narrative analysis technique. Findings revealed that appointment of inappropriate persons in the BoD, political involvement in operational decision making which hinder merit based decision making in corporation as a result there are wrong policies, unsound decision making, less transparent actions, and lose accountability practices cause poor performance. Corporation has been facing chronic issues like shortage of aircrafts, huge financial losses, un-availability of spare parts on time, delay in flight take offs, frequent development of technical faults in aircrafts, conflicts between union with management are frequently reported in media and annual reports of the corporation. Implications of findings are discussed in the last section of the paper.