Pakistan International Airlines has grounded nearly a third of its pilots.
The aviation ministry says around 150 pilots have fake licenses.
It came to light during scrutiny of the airline following the PIA crash last month.
The pilots did not actually take the exam but paid other pilots to do it for them.
It is not only a problem at the airline.
It has been widespread across the country with 262 pilots holding ‘dubious’ licenses.
"PIA acknowledges that fake licenses are not just a PIA issue but spread across the entire Pakistani airline industry," a PIA spokesperson said.
The interim report into the Pakistan Airlines crash was published and laid the blame on human error.
The plane ploughed into a residential area in Karachi, killing 97 people onboard and one person on the ground.
There were just two survivors.
Aviation minister Ghulam Sarwar Khan said a ‘fair’ investigation was conducted and said an ‘overconfident’ pilot and air traffic control were at fault.
"There was no technical fault in the plane. It was completely fit for flying. The pilot and co-pilot, who were both medically fit and experienced, did not mention any technical issue to the ATC throughout the flight," Khan said.
"Unfortunately, the pilot was overconfident and not focused. He ignored the ATC’s warnings several times until the final approach."
After a first failed landing attempt, the engine caught fire but that wasn’t relayed to the cockpit by air traffic control.
"This is a free, fair, and transparent inquiry. Very strict action is being taken against those found responsible for the crash," Khan added.
