No relief for debt-ridden PIA as govt fails to release funds
By News Desk
September 14, 2023 01:23 PM
No respite in sight, at least in near future, for the Pakistan International Airlines (PIA), which continues to remain burdened with loans as the government has failed to release funds for the airline despite its guarantee that it will, reported 24NewsHD TV channel on Thursday.
Sources told 24News that on the other hand, different banks which last week had promised with the PIA to provide it Rs14 billion in loans, were yet to release the amount since the latter had not given the deadline for their return.
Already, they said, the airline owed Rs260 billion to lenders.
Moreover, they revealed, the airline urgently required Rs23 billion so that it could sustain its flight operation.
They disclosed that paucity of funds had even affected PIA’s domestic flight operation.
Similarly, cancellation of flights had led to sharp decline in national flag carrier’s revenues, sources revealed.
Things had come to such a pass, they explained, that if funds were not provided to the airline by September 15, PIA’s flight operation might be suspended.
On the government’s intervention, private banks had decided to start giving loans to the airline again.
As per instructions given to banks by the government, funds will be released to the PIA, which is facing financial constraints because of the inability to repay interest let alone the principal amount.
Three days ago, Caretaker Prime Minister Anwaar-ul-Haq Kakar had stressed the need for drawing up a detailed plan for the restructuring of the national flag carrier as soon as possible.
Reporter: Tayyab Saif