Int’l creditors abandon PIA due to its financial crunch
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International money lending organisations have refused to work with the Pakistan International Airlines (PIA) on account of the country’s negative credit rating and dependence on the State Bank of Pakistan (SBP) for the foreign exchange reserves, reported 24NewsHD TV channel on Saturday.
Quoting its sources, the channel reported that due to the failure of the airline to repay its loans, there are fears that four of its Boeing 777 and five airbuses-320, which it acquired on lease, might be grounded.
They disclosed that the payments, which were made by the government to the national flag carrier, had also stopped due to which the airline was unable to pay back its loans.
Sources told 24News that the PIA had to repay over $100 million to its foreign lenders.
They further said that in the event of the airline’s failure to repay its loans, its 31-plane fleet could reduce to mere 14 planes.
Reporter: Saeed Ahmad