PIA Seeks Bailout as Financial Woes Ground Planes, Executives Oppose Privatization Despite Mounting Debts

PIA recently cancelled flights and grounded planes due to lack of funds to pay creditors and suppliers. The airline is seeking emergency funds from the government.
PIA executives oppose privatization plans despite the airline's huge debts and losses. The government is being asked for a Rs23bn cash injection.
Comparisons made between PIA and power companies - airlines serves less people but takes more public funds.
Past turnaround attempts for PIA have failed. Privatization seen as the only way to reduce burden on taxpayers.
Interim PM has directed authorities to fast-track PIA privatization but concrete actions needed to follow rhetoric.

dawn.com

Relevant topic timeline:

9/15/2023

Kakar Tasks New Minister with Fast-Tracking PIA Privatisation Amid Cash Flow Crisis

Caretaker Prime Minister Anwaarul Haq Kakar has instructed newly appointed Privatisation Minister Fawad Hassan Fawad to speed up the process of privatising Pakistan International Airlines (PIA) in order to improve its services and meet global standards. PIA has reportedly grounded several aircraft due to a severe cash flow crisis and is seeking a cash injection of Rs23 billion.

9/17/2023

PIA Secures Rs17 Billion Loan to Restore Operations After Cash Flow Crisis

Pakistan International Airlines (PIA) has secured a Rs17 billion bank loan, allowing it to pay salaries, operate flights smoothly, and fulfill its financial obligations.

9/17/2023

PIA Secures Rs17 Billion Loan to Resume Flights After Financial Troubles

Pakistan International Airlines (PIA) has reported a recovery in its flight operations after securing a Rs17 billion bank loan, alleviating concerns about the airline's potential closure due to financial struggles.

9/26/2023

Government Mulls Privatization to Tackle Pakistan's Ballooning Energy Sector Debt

The Pakistani government is considering privatizing power generation and distribution companies or transferring management control to private entities for 20 to 25 years in order to address the country's circular debt in the energy sector. The circular debt in the gas sector has surpassed that of the power sector, reaching a total of Rs2.8 trillion ($17 billion).

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Posted 9/16/2023, 1:41:56 AM

PIA Seeks Bailout as Financial Woes Ground Planes, Executives Oppose Privatization Despite Mounting Debts

PIA recently cancelled flights and grounded planes due to lack of funds to pay creditors and suppliers. The airline is seeking emergency funds from the government.
PIA executives oppose privatization plans despite the airline's huge debts and losses. The government is being asked for a Rs23bn cash injection.
Comparisons made between PIA and power companies - airlines serves less people but takes more public funds.
Past turnaround attempts for PIA have failed. Privatization seen as the only way to reduce burden on taxpayers.
Interim PM has directed authorities to fast-track PIA privatization but concrete actions needed to follow rhetoric.

dawn.com

Relevant topic timeline:

9/15/2023

Kakar Tasks New Minister with Fast-Tracking PIA Privatisation Amid Cash Flow Crisis

9/17/2023

PIA Secures Rs17 Billion Loan to Restore Operations After Cash Flow Crisis

Pakistan International Airlines (PIA) has secured a Rs17 billion bank loan, allowing it to pay salaries, operate flights smoothly, and fulfill its financial obligations.

9/17/2023

PIA Secures Rs17 Billion Loan to Resume Flights After Financial Troubles

9/26/2023

Government Mulls Privatization to Tackle Pakistan's Ballooning Energy Sector Debt