PIA faces huge financial setback
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International financial institutions have declined to collaborate with Pakistan International Airlines (PIA) due to the nation's unfavorable credit rating and its reliance on the State Bank of Pakistan (SBP) for foreign exchange reserves. According to their sources, the airline's inability to meet its loan obligations has raised concerns about the possible grounding of four Boeing 777 and five Airbus A320 aircraft that were leased.
The channel disclosed that government payments to the national flag carrier had also come to a halt, resulting in the airline's inability to repay its outstanding loans.
According to insiders cited by 24News, PIA had an outstanding debt of more than $100 million to its international creditors. They additionally noted that if the airline fails to meet its loan commitments, its current fleet of 31 aircraft could potentially dwindle to a mere 14.
The refusal of international money lending organizations to engage with PIA stems from the precarious financial situation attributed to Pakistan's negative credit rating and the airline's heavy reliance on the SBP for foreign exchange reserves. This reluctance to work together has exacerbated the airline's ongoing struggles with loan repayment, casting a shadow over the fate of several leased aircraft and the overall size of its operational fleet. As PIA grapples with these financial challenges, it faces a critical juncture that could significantly impact its ability to maintain its aircraft and services
