Pakistan International Airlines (PIA) has announced that their financial situation has improved after the government released funds to help the struggling airline. The exact amount of funds was not mentioned, but PIA stated that the money will be used to pay off debts for aircraft and engine leases, as well as handling payments at foreign stations. PIA also mentioned that their restructuring plan is still on track.
According to the latest financial results, PIA suffered losses of Rs64 billion in the first six months of 2023, due to high administrative and finance costs. This was a significant increase from the Rs43.5 billion loss in the same period the previous year.
Earlier this week, the Economic Coordination Committee discussed issues related to PIA. The Ministry of Aviation provided a summary on financial support and restructuring for PIA, and it was decided to form a separate committee to assess the restructuring plan.
The ECC also rejected PIA’s request to postpone monthly payments of Rs1.3 billion to the Federal Board of Revenue and Rs0.7 billion to the Civil Aviation Authority. However, the Finance Division and the State Bank of Pakistan will provide support to PIA once a concrete restructuring plan has been finalized.
It is important to note that PIA is part of the ongoing privatization program initiated by the previous government. The Privatisation Division also presented an update on the privatization of the Roosevelt Hotel, an asset of PIA, and the CCoP gave approval for hiring a financial adviser to proceed with the transaction.
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