PIA partially resumes flight operation

KARACHI: Pakistan International Airlines (PIA) has partially resumed its flight operation after disbursing fuel payments to the Pakistan State Oil (PSO), ARY News reported on Friday.

The national flag carrier operated a limited number of flights after disbursing Rs100 million to the PSO in terms of fuel payments, sources told ARY News.

The PIA administration made the fuel payments for eight international flights. Yesterday, the airline paid Rs70 million to PSO.

In a relevant development today, cash-strapped Pakistan International Airlines (PIA) got the caretaker government’s nod to acquire a fresh loan of Rs20 billion from commercial banks, sources within the finance ministry told ARY News.

Read more: Over 500 PIA flights cancelled in 11 days

Pakistan International Airlines is on the verge of a shutdown as it cancelled over 500 flights in the past 11 days due to the unavailability of fuel.

Sources said the finance ministry has ‘directed’ commercial banks to release fresh loans to Pakistan International Airlines, while the current govt’s debt is also to be ‘rescheduled’ for six months.

They further say the National Bank of Pakistan, Bank of Punjab and six other commercial banks will give fresh loans to the PIA on the guarantee.

Related: PSO’s outstanding dues surge past Rs700bln

The national flag carrier has already taken a loan worth Rs260 billion from commercial banks on the government’s guarantee.

The Pakistan International Airlines loan will be rescheduled for six months until the privatization of the national entity, the sources said.

The national flag carrier is facing arguably its worst crisis in history as Pakistan State Oil (PSO) has cut the fuel supply over unpaid dues.

The move forced the airline to cancel 537 flights since Oct 13.