Pakistan International Airlines (PIA) has requested yet another bailout package worth Rs. 23 billion from the government in order to stay afloat.
The PIA management met with interim Finance Minister Dr. Shamshad Akhtar last week seeking urgent liquidity. The caretaker government hasn’t accorded its approval yet but asked the national flag carrier to submit an achievable debt repayment plan, according to Express Tribune.
During the meeting, the PIA management informed the caretaker finance minister of a Rs. 23 billion funding shortage faced by the airline. Instead of accepting the carrier’s bid for a full and direct bailout, Shamshad instructed PIA to secure Rs. 13 billion in sovereign guarantees and the remaining Rs. 10 billion, both from banks.
PIA asked the finance minister for assistance in obtaining such bank loans since its decrepit financial statements didn’t allow it to acquire such liquidity on its own.
Shamshad directed PIA to present an achievable restructuring and privatization plan to the federal cabinet. The finance minister further asked the airline to pitch a realistic business proposal that should include management’s own efforts rather than relying just on handouts from the federal government.
PIA’s persistent financial problems are cause for concern, but its inability to meet debt repayment obligations over the last decade is widely seen as the bigger issue. At least three PIA restructuring exercises have been carried out since 2017 but without a credible framework for guaranteed repayment.
Pertinently, the flag carrier got Rs. 15 billion from the previous government in the previous fiscal year. Also, the finance ministry endorsed Rs. 4 billion in bridge funding payable to the Civil Aviation Authority (CAA) last month, which will be handed out in 4QFY24.
This white elephant must be shut down.
Please increase the funding of PIA. This airline is the pride of Pakistan. Give them as much as possible. Also PIA gives discounted tickets to army and senior officers. Please extend this discount to all government employees. Thanks
Bleeding PIA shall be closed or put on sale, get rid of this white elephant immediately……get rid of this white elephant 🐘🐘🐘🐘🐘🐘 🐘🐘🐘🐘 get rid of this white elephant 🐘🐘🐘🐘🐘
Continue feeding the white elephant and continue bleeding.
Stop these concessional airfares to X, Y and Z. Stop free rides for the PIA staff and not just their relatives but also the relatives of their relatives. Stop this joke. Stop this nonsense. If the authorities cannot do anything, better sell the planes. Enough is enough.
@adnan aziz if army officers, pia families and bureaucrats are getting discounts on tickets then they deserve it. They are working for the benefit and uplift of Pakistan and are patriotic people
But i do agree that politicians should not get any discounts (as they are looting the government only).
Your comment did not even deserve a response but I thought I should say something. What you have said is not just ridiculous but simply outrageous. Do you think the rest of the people are working against Pakistan? Enough for now.
PIA losses 400 crore 6 DAILY. Needs to be shut down or sold ASAP!
Govt should close down PIA, sell all of its assets and deposit the money in SBP or outsource it. Why tax payers are bearing brunt of inefficiency of PIA management and government.
Privatisation is the only solution,if you want to show your presence in this Market economy….. better to be, instead part of history
Sorry sorry sorry for like those people which doesn’t earn for itself and for its nation having a big earnings company
Sell all organisation Wich can not sustain business by themselves
It becomes a leach for Pakistan and its people they should privatise it immediately govt should not think for second they should privatise it for 💯 percent ownership .