PIA’s monthly losses balloon to Rs12 billion

PIA's monthly losses balloon to Rs12 billion

ISLAMABAD, Sep 16: The monthly losses of the national flag carrier have reached Rs12 billion. The Finance Ministry has refused to bear any more interest and losses on Pakistan International Airlines (PIA) monthly debt.

The PIA has to pay more than Rs8 billion monthly interest on loans to commercial banks. The airlines has borrowed Rs260 billion from commercial banks on government guarantee.

According to documents, the PIA is not paying Rs1.25 billion in tax to the Federal Board of Revenue (FBR), while it is not paying over Rs1 billion a month to the Civil Aviation Authority.

Also Read: PIA spokesperson refutes reports of imminent shutdown

The PIA’s monthly income is Rs22 billion, while its expenses are up to Rs34 billion, according to sources. The total loss of the national airlines has reached about Rs740 billion.

The caretaker finance minister has sought a privatization plan from the Privatization Division and the PIA administration.

It has been proposed to privatize the Pakistan International Airlines immediately.

The recent buzz about the potential shutdown of the airlines prompted the spokesperson to clarify the situation.

A spokesman for the PIA confirmed on Friday that the rumors and worries over the national airline’s shutdown were untrue, rejecting the speculation generated by a specific paragraph of an official statement addressing the PIA’s financial situation.

The spokesperson also underlined that PIA’s reputation has been unfairly harmed by setting September 15 as the closure date.

It is notable that the administration of PIA has made significant strides in procuring money to meet the urgent domestic and international financial responsibilities, including the prompt payment of staff wages.

The PIA has obtained short-term loans worth billions of rupees, which is a big milestone. The national airline has been given a loan of Rs13 billion by the National Bank with a payback period of six to 12 months.

A loan between Rs7 and Rs10 billion has also been authorized by Askari Bank. These financial arrangements demonstrate the PIA’s dedication to its business activities and allay fears about its demise.