Fears of suspension of air operations increased as the national airline did not get an immediate loan

Banks have not shown any interest in asking three banks for a loan facility of five billion, letter

PIA

The national airline is facing one difficulty after another, with possible suspension of air operations due to lack of immediate credit.


According to reports, National Airline Antamiya has written a letter to the Aviation Division requesting the Finance Ministry to urge the banks to immediately intervene to provide a loan of Rs 5.7 billion on the guarantee of the Government of Pakistan.


In the letter written by the national airline, it has been said that for the continuation of the operation, seven and a half billion rupees loan should be provided immediately from the banks. The option remains, the banks have not shown any interest in asking for a loan facility of five billion from three banks under these guarantees.


The letter also states that no bank is interested in lending due to PIA's severe financial problems, Jeddah and Dubai fuel supply has been stopped due to financial problems, while PSO has also refused to supply fuel. .


The letter has demanded that the Ministry of Finance should immediately intervene to provide a loan of seven and a half billion rupees to the banks, however, despite contacting the spokesperson PIA on the matter, it has not informed any kind of position.


It should be noted that the monthly loss of the national airline (PIA) which is suffering from financial difficulties has exceeded 12 billion rupees. According to the documents, the monthly income of PIA is 22 billion and the expenses are up to 34 billion rupees, the monthly loss of PIA is 12 billion. billion, while the total deficit reached about 740 billion rupees.


PIA has taken a loan of 260 billion from commercial banks on government guarantee, on which the commercial banks have to pay more than 8 billion rupees monthly interest on the loan, PIAFBR has 1 billion 25 crore rupees while civil AV Not paying more than one billion per month to the association.


On the other hand, the finance ministry refused to bear interest and further losses on the national airline's debt. The Caretaker Finance Minister asked the Privatization Division PIA administration for the privatization plan, the concerned authorities have been directed to implement the privatization of Pakistan International Airlines immediately.