The Pakistan International Airlines (PIA) operation has started to improve following the successful negotiations between the national flag carrier and the Pakistan State Oil on fuel supply, reported 24NewsHD TV channel on Saturday.
The PIA has got second good news this week. Yesterday, the Economic Coordination Committee (ECC) approved Rs8 billion bailout package for it. Today, the PSO agreed to enhance the credit limit of the crisis-hit national flag carrier to Rs500 million.
Besides the daily payment of Rs100 million by the national airlines, the PSO will continue supplying fuel to other PIA flights.
The PSO officials have confirmed that the company has increased the credit limit of the PIA.
According to the agreement, the PIA will provide a list of flights to the PSO and the oil company will provide fuel to these planes.
It is expected that after about two weeks, PIA’s domestic operations will start showing signs of improvement and its revenue will also improve.
The PIA has already used a credit line of Rs15 billion.
According to the PSO authorities, the credit line was approved in the new negotiations to revive the operations of the PIA.
The situation has improved after the approval of Rs8 billion bailout package by the ECC for the PIA.
Reporter Ashraf Khan