Pakistan International Airlines (PIA) is on the verge of securing a loan worth $300 million from international banks without government’s sovereign guarantee.
According to reports, the proposed loan would be utilized to procure new aircraft, engines, and spare parts.
Earlier, PIA had to obtain a sovereign guarantee from the federal government to secure loans from international lenders, a process that took nearly four months.
According to the spokesperson of the PIA, Abdullah Hafeez Khan, a consortium of Credit Suisse, Mashreq Bank, and Noor Bank will provide a loan of $300 million to PIA.
Abdullah Hafeez Khan says that the national flag carrier’s handsome revenue growth, enhanced operational performance, cost-saving measures, consistent product improvement, and positive global perception has played important role in securing the loan without the federal government’s sovereign guarantee.
During the annual meeting of the board of directors of PIA, Chief Executive Officer of the PIA, Arshad Malik, said that relentless efforts from the PIA administration have started bearing fruits as the organization’s losses have dropped significantly. During Q1 of 2019, PIA’s revenue stood at Rs. 8.5 billion whereas it was only Rs. 7 billion during Q1 of 2018.
Pakistan International Airlines (PIA) has not conducted an internal audit for the past three years. CEO PIA, Arshad Malik, has sought audit reports of the previous years and ordered to initiate a compilation of the financial results of the year 2019.