ISLAMABAD – PIA to seek huge loan worth $300 million from internationalbanks without government guarantee.
Pakistan International Airlines (PIA) is on the verge of securing a loanworth $300 million from international banks without government’s sovereignguarantee.
According to reports, the proposed loan would be utilized to procure newaircraft, engines, and spare parts.
Earlier, PIA had to obtain a sovereign guarantee from the federalgovernment to secure loans from international lenders, a process that tooknearly four months.——————————
According to the spokesperson of the PIA, Abdullah Hafeez Khan, aconsortium of Credit Suisse, Mashreq Bank, and Noor Bank will provide aloan of $300 million to PIA.
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Abdullah Hafeez Khan says that the national flag carrier’s handsome revenuegrowth, enhanced operational performance, cost-saving measures, consistentproduct improvement, and positive global perception has played importantrole in securing the loan without the federal government’s sovereignguarantee.——————————
During the annual meeting of the board of directors of PIA, Chief ExecutiveOfficer of the PIA, Arshad Malik, said that relentless efforts from the PIAadministration have started bearing fruits as the organization’s losseshave 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 auditfor the past three years. CEO PIA, Arshad Malik, has sought audit reportsof the previous years and ordered to initiate a compilation of thefinancial results of the year 2019.
