Important decisions made regarding PIA privatisation
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In Karachi, the interim government has made significant strides towards securing an additional financial assistance plan for Pakistan International Airlines (PIA), the national flag carrier, which is grappling with a severe financial crisis, as reported by ARY News on Wednesday.
According to sources, discussions have taken place between representatives from the finance ministry, commercial banks, and PIA. The national airline is expected to receive Rs7.5 billion from commercial banks with government backing.
These sources also indicated that the final decision will be reached within the next two to three days. This progress comes after three commercial banks withdrew from providing loans to PIA's management following certain conditions.
As a result of obtaining this loan, PIA's management will be able to promptly disburse employee salaries and address outstanding fuel payments to the Pakistan State Oil (PSO).
Sources suggest that the airline's management will place a stronger emphasis on executing their 'Plan B' after securing the loan, aiming to expand international flights and specific routes to bolster revenue.
Currently, PIA is encountering challenges related to refunds, and this new financial support package is expected to alleviate the airline's financial difficulties.
