On Monday it was revealed that the Pakistan International Airlines (PIA) has raised over $130 million from loans in fresh financing from a banking group.
This brings up the total sum of loans for the national airline up to $3 billion, taking into account all the previous loans due.
UBL Financing PIA
In a statement made by the Pakistan International Airlines (PIA), it was mentioned that they received their financial backing from Pakistan’s United Bank Limited (UBL) and Credit Suisse Singapore as lead bankers, in addition to the state-run National Bank of Pakistan.
The statement says “The (financing) facility …. will be utilized by PIA for its general working capital requirements and in improvement in passenger services”
Yet it was stated by a PIA official who requested anonymity, that the new loan of $130 million might be used to settle the previous due loans.
How the Attempt To Privatize PIA Turned Out
The airline company is already drowning in loans, reaching up to an amount of roughly Rs. 329 billion or $3 billion. Not only that, but it also suffered a hefty annual loss of Rs32 billion. It only makes sense that the government would try to privatize it.
Earlier in this year 2016, Prime Minister Nawaz Sharif’s government had tried to privatize PIA, but it’s 18,000 employees severely protested. Two of those employees were killed while the police tried to take action and stop the protesting employees outside the airline’s head office in Karachi.
Discounts Being Offered On Late Night Domestic Flights
According to the national carrier, a special discount of 30% is now being offered on late night flights between the hours 00:00 and 06:00.
The spokesman who revealed that also made another statement saying that special discount on late night flights will only be valid for a few selected domestic routes between:
The discount offer started yesterday on Monday, 28th November, 2016.