The Ministry of Finance expressed concern about the ongoing loans from Pakistan International Airlines Company Limited (PIACL). He continued by saying that PIA, as a commercial entity, is about to land, due to the ongoing acquisition of loans.
Landing is when a plane crashes on its bottom without using the landing gear.
The ministry submitted this comment after PIA submitted a new request for additional Rs guarantees. 15.5 billion to keep the flag.
PIA is on The Verge of Disaster: Ministry of Finance
The national flag airline even experienced liquidity problems for its daily operations. The ministry reveals that the Economic Coordination Committee (ECC) has already approved more than Rs. $ 24 billion in GoP guarantee in the 2018-19 fiscal year, exclusively for engine refurbishment requirements.
However, no visible improvement has been observed in the commercial operations of the airline.
The ministry also stated that the current GoP guarantee level, apart from the engine renovation, is at Rs. 187 billion. In addition, the Finance department served PIA loans with a budget allocation of Rs. 18 billion for the current fiscal year.
On January 1, 2019, the Prime Minister approved short-term measures to reactivate the PIA. These steps include the operation of the Hajj 2019, the repair and procurement of land support equipment, the repair of land-based aircraft, the repair of the flight entertainment system and the late payments to suppliers of services and services.
According to the Civil Aviation Division, the airline is taking initiatives to rationalize routes, but ground levels limit the airline’s capabilities.
PIA is trying to prepare the aircraft on land to work urgently. However, you have an additional warranty of up to R. 5.6 billion for engine maintenance and related parts acquisition.
CAD has also revealed that PIA is experiencing pressure to pay for accumulated liabilities. In the midst of cash flow crises, the airline is seeking an additional guarantee from Rs. 8.4 billion for payments to suppliers and for the repair / acquisition of land handling equipment.
In addition, for the repair of flight entertainment systems (IFE), the airline is looking for a cash award from Rs. 485 million.
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