KARACHI: Pakistan International Airlines (PIA) will be acquiring US$250 million loan from foreign banks aimed at mostly purchasing the aircraft engines, ARY NEWS reported.
According to sources, the decision was aimed in the direction of halting reliance on government funding for the national flag carrier and approaching private financiers.
The funding will be acquired from four foreign banks and no sovereign guarantees from the government are involved in it. “The airline will be returning these loans from the foreign exchange reserves it earns from various sources,” they said.
The loan process does not involve handing over any land in possession of the airline to the foreign lenders.
Earlier in the day, PIA Chief Executive Officer (CEO) Air Marshal Arshad Malik on Monday said that the World Bank is willing to invest in the airline.
Talking in a meeting of the PIA’s Board of Directors, Arshad Malik said the administration of the PIA has managed to drop down the losses of the national flag-carrier, adding that two more aircrafts have been added in the PIA’s fleet.
The CEO PIA said the World Bank has showed its consent to invest in the Pakistan International Airlines, while several pacts of collaboration have been signed with banks .
During the meeting, Mr. Arshad Malik was briefed by the officials concerned about the reforms process in the PIA.
The meeting also approved the audit report and accounts of the airline for 2018.
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