Govt persuades banks to resume lending money to PIA

There are chances of improvement in the financial condition of the Pakistan International Airlines (PIA) as on the government’s intervention, private banks have decided to start giving loans to the airline again, reported 24NewsHD TV channel on Saturday. 

As per instructions given to banks, funds will be released to the PIA, which is grappling with financial constraints because of the inability to repay interest let alone the principal amount.         

It is being hoped that the release of funds, which is expected to start next week, will help better the balance of payment by the national flag carrier.

The airline’s management has decided to spend the amount on the purchase of spare parts for planes and other purposes.

Three days ago, Caretaker Prime Minister Anwaar-ul-Haq Kakar had called for drawing up a detailed plan for the restructuring of struggling flag carrier as soon as possible.

Once formed, the plan will then be presented to the country's Economic Coordination Committee.

The government’s plans to privatize the PIA have not been received by the airline's employees well.

Union leaders have argued that any privatization of the state-owned carrier would lead to poorer working conditions for staff members and a lower standard of service for passengers.

Reporter: Tayyab Saif