Government approves Rs20 billion loan for PIA from banks
Pakistan International Airlines (PIA), grappling with
financial challenges, is poised to secure a fresh loan of Rs20 billion from
commercial banks following approval from the interim government, according to
sources within the finance ministry, as reported by ARY News.
PIA has been teetering on the brink of a shutdown, having
had to cancel more than 500 flights in the past 11 days due to fuel shortages.
Government
fast-tracks PIA privatization amid financial crisis
Sources indicate that the finance ministry has directed
commercial banks to disburse new loans to PIA, and the current government's
debt is set to be rescheduled for a six-month period.
Furthermore, it is stated that the National Bank of
Pakistan, Bank of Punjab, and six other commercial banks will extend fresh
loans to PIA with appropriate guarantees. It's worth noting that the national
flag carrier has already obtained a loan of Rs260 billion from commercial
banks, backed by the government.
PSO’s
refusal to supply fuel forces PIA to cancel 14 flights
The loan extended to Pakistan International Airlines will
undergo a six-month rescheduling, pending the privatization of the national
entity, according to these sources.
PIA is currently facing one of the most severe crises in its
history, aggravated by Pakistan State Oil (PSO) cutting off fuel supplies due
to outstanding dues. This has resulted in the cancellation of 537 flights since
October 13.
Source: ARY News