BAFL 46.25 Increased By ▲ 0.50 (1.09%)
BIPL 20.19 Decreased By ▼ -0.03 (-0.15%)
BOP 5.30 Decreased By ▼ -0.05 (-0.93%)
CNERGY 4.61 Increased By ▲ 0.06 (1.32%)
DFML 16.61 Increased By ▲ 0.64 (4.01%)
DGKC 78.06 Decreased By ▼ -0.63 (-0.8%)
FABL 28.21 Increased By ▲ 0.36 (1.29%)
FCCL 20.07 Increased By ▲ 1.21 (6.42%)
FFL 9.14 Increased By ▲ 0.16 (1.78%)
GGL 12.84 Decreased By ▼ -0.02 (-0.16%)
HBL 111.51 Decreased By ▼ -0.39 (-0.35%)
HUBC 123.69 Increased By ▲ 1.49 (1.22%)
HUMNL 7.65 No Change ▼ 0.00 (0%)
KEL 3.27 Increased By ▲ 0.03 (0.93%)
LOTCHEM 28.30 Increased By ▲ 0.32 (1.14%)
MLCF 41.81 Decreased By ▼ -0.64 (-1.51%)
OGDC 115.39 Increased By ▲ 4.71 (4.26%)
PAEL 19.05 Increased By ▲ 0.16 (0.85%)
PIBTL 5.53 Increased By ▲ 0.06 (1.1%)
PIOC 112.85 Decreased By ▼ -2.45 (-2.12%)
PPL 100.04 Increased By ▲ 5.05 (5.32%)
PRL 25.64 Increased By ▲ 0.27 (1.06%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 67.52 Increased By ▲ 3.02 (4.68%)
SSGC 12.54 Increased By ▲ 0.27 (2.2%)
TELE 8.46 Increased By ▲ 0.07 (0.83%)
TPLP 13.39 No Change ▼ 0.00 (0%)
TRG 85.46 Increased By ▲ 1.36 (1.62%)
UNITY 26.60 Increased By ▲ 0.75 (2.9%)
WTL 1.57 Increased By ▲ 0.03 (1.95%)
BR100 6,377 Increased By 82.2 (1.31%)
BR30 22,376 Increased By 439.3 (2%)
KSE100 62,493 Increased By 801.8 (1.3%)
KSE30 20,829 Increased By 274.3 (1.33%)

Debt-ridden Pakistan International Airlines (PIA) said on Saturday that its financial woes have “eased out” after government released critical funds aimed at helping the national carrier.

Taking to social media platform X, formerly known as Twitter, the national carrier said: “PIA’s financial challenges ease out as government of Pakistan supports with release of some critical funds through banks.”

PIA, without dwelling into the figures, added that the funds shall be used to clear long-standing dues of aircraft and engine leases, spares support and handling payments at foreign stations.

“Restructuring also on track,” it added.

As per the latest financial results, PIA sustained losses to the tune of Rs64 billion in the first six months (January-June) of 2023, owing to high administrative and finance cost. This was substantially higher than the loss of Rs43.5 billion suffered in the same six-month period of the previous year.

Earlier this week, the Economic Coordination Committee (ECC) also discussed issues pertaining to the PIA.

During the meeting, the Ministry of Aviation submitted a summary regarding ‘Financial support for PIACL & its Restructuring’. Secretary Aviation gave a detailed briefing to the Chair about the financial burdens, liabilities of PIA and the need for restructuring of the organisation.

The ECC discussed and reviewed the timelines and costs of the restructuring plan.

After detailed discussion and deliberation, it was decided to constitute a separate committee for assessment of the restructuring plan of PIA, according to a statement issued at the time.

The ECC also rejected the request for deferment of payments of Rs1.3 billion per month which the airline pays to the Federal Board of Revenue (FBR) against FED (federal excise duty) and another Rs0.7 billion per month which it pays to Civil Aviation Authority (CAA) against embarking charges.

It was also decided that the Finance Division and the State Bank of Pakistan will support PIA to tackle its financial challenges after a concrete plan of restructuring of PIA has been finalised and submitted to the satisfaction of the Committee.

PIA was included in the ongoing privatisation program by the previous government.

The Privatisation Division recently also presented a summary on detailed update regarding the privatisation of the Roosevelt Hotel.

The CCoP, after discussion, gave concurrence to the Privatisation Commission for hiring of a financial adviser to process/structure the transaction of Roosevelt Hotel, New York, an asset of the PIA Investment Limited (PIA-IL).

Also read:

Comments

1000 characters
Builder Sep 09, 2023 05:44pm
My goodness! Pumping public money into dead elephant once again. Hello, we need to get rid of this carcass!
thumb_up Recommended (0) reply Reply
Noman Sep 09, 2023 07:49pm
@Builder, Totally agree.
thumb_up Recommended (0) reply Reply
KU Sep 09, 2023 10:08pm
Four decades of pain and corruption, but the nightmare never ends, We have indeed touched the peaks of shameless. Pathetic!
thumb_up Recommended (0) reply Reply
KhanRA Sep 10, 2023 12:00pm
No restructuring. Sell it or shut it down. PIA is not necessary given how many airlines fly to Pakistan, and is instead a massive drain to the country’s fragile economy.
thumb_up Recommended (0) reply Reply
XYZ Sep 10, 2023 01:51pm
PIA's international flights are not even to international standards...its a big choas...from staff to service...who will teach PIA staff not to sit on curb of road in north american airports while waiting for their transportion to hotels...
thumb_up Recommended (0) reply Reply

PIA says govt support ‘eases out’ financial woes, ‘restructuring also on track’

Four countries: FBR decides to ink deal on Electronic Data Interchange

Pakistan not on agenda of IMF Executive Board meeting

ECP likely to get election funds soon

Overbilling in violation of Nepra Act: All Discos including KE to face legal proceedings

Commodities being imported by TCP: Govt decides to change payment mechanism

Israeli ground forces move into southern Gaza

War risk insurance rates edge up

Cypher case: IK says will ‘drag’ Bajwa, US embassy officials through the courts

Nov oil sales rise 9pc MoM

Issues related to KE: Al-Jomaih shares its ‘ordeal’ with PM, petroleum minister