The plan to privatize Pakistan International Airlines (PIA) for the upcoming year has encountered obstacles, as the privatization commission struggled to resolve issues regarding loan repayments and legal concerns.
Reports from insiders revealed that the interim federal minister for privatization, Fawad Hussain Fawad, faced challenges in executing the transfer of PIA to the private sector by January 2024.
The Ministry of Finance will decide on meeting PIA's financial needs for the next three months, as the airline has acquired over Rs 270 billion in loans from commercial banks under government guarantees.
According to sources, PIA is unable to afford more than Rs. 8 billion in interest on the Rs. 260 billion loan. National Bank, Bank of Punjab, and eight other commercial banks are among the lenders involved.
The decision to reschedule government loans until PIA's privatization remains unresolved. The Ministry of Finance intends to form a committee to determine the airline's financial requirements.
Previously, there were indications that the financial management of Pakistan International Airlines (PIA) might transition to the Privatisation Commission.
