PIA Secures Rs17 Billion Loan to Resume Flights After Financial Troubles

PIA secured a Rs17 billion loan to pay salaries and resume flight operations after grounding aircraft due to financial troubles
PIA's debt has ballooned to Rs743 billion, 5 times higher than assets, with losses of Rs86.5 billion last year
Attempts over the past decade to turn PIA around through cost-cutting and fleet expansion have failed
PIA's restructuring plan involves creating a new holding company to retain debt and non-aviation assets
The government has removed restrictions on private investment in PIA but is yet to approve the restructuring plan

dawn.com

Relevant topic timeline:

9/16/2023

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

The debt-ridden Pakistan International Airlines (PIA) is facing potential closure and has requested emergency funds to pay its creditors, but the government's plan to privatize the airline is likely to face opposition from its staff and executives; PIA's debt and liabilities have surpassed its assets by five times, and its annual losses are projected to increase significantly by 2030.

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.