IMF 'okays' loan rescheduling plan for PIA privatisation

ISLAMABAD: The International Monetary Fund (IMF) has ‘approved’ a debt rescheduling plan for Pakistan International Airlines (PIA) privatisation, ARY News reported, citing sources، 

According to the details, the negotiations between the officials of the Ministry of Privatization, the Ministry of Finance and the IMF were successful.

Officials stated that the final approval for PIA’s debt rescheduling plan will be taken from the caretaker federal cabinet.

The IMF has agreed to pay the interest on the PIA loan to the government of Pakistan for one year. The government will pay the Rs280 billion loan to the banks at 12 percent interest for one year.

Read more: PIA privatization plan ‘fails over financial obligations’

The IMF’s officials said that banks should not be burdened with interest payments on PIA loans for more than one year.

PIA will be privatized and a loan repayment plan will be made in one year. After privatization, a loan repayment plan is likely to be made from the dividends of Roosevelt Hotel and Pakistan International Airlines.

Last year, it emerged that the privatization plan of Pakistan International Airlines (PIA) for the upcoming year faced setbacks, as the privatization commission couldn’t resolve issues related to loan repayments and legal matters.

Sources close to the development stated that the interim federal minister for privatization, Fawad Hussain Fawad, failed to implement the plan to transfer PIA to the private sector by January 2024.