International financial institutions have declined to collaborate withPakistan International Airlines (PIA) due to the nation’s unfavorablecredit rating and its reliance on the State Bank of Pakistan (SBP) forforeign exchange reserves. According to their sources, the airline’sinability to meet its loan obligations has raised concerns about thepossible grounding of four Boeing 777 and five Airbus A320 aircraft thatwere leased.
The channel disclosed that government payments to the national flag carrierhad also come to a halt, resulting in the airline’s inability to repay itsoutstanding loans.
According to insiders cited by 24News, PIA had an outstanding debt of morethan $100 million to its international creditors. They additionally notedthat if the airline fails to meet its loan commitments, its current fleetof 31 aircraft could potentially dwindle to a mere 14.
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The refusal of international money lending organizations to engage with PIAstems from the precarious financial situation attributed to Pakistan’snegative credit rating and the airline’s heavy reliance on the SBP forforeign exchange reserves. This reluctance to work together has exacerbatedthe airline’s ongoing struggles with loan repayment, casting a shadow overthe fate of several leased aircraft and the overall size of its operationalfleet. As PIA grapples with these financial challenges, it faces a criticaljuncture that could significantly impact its ability to maintain itsaircraft and services
