PIA to get loan of $300 million without the guarantee of the government

Taking the revenue growth of the airline into account, a number of international banks are willing to help it grow.

PIA (Pakistan International Airlines) has earned the trust of many international banks and now they’re planning to take a loan of $300 million without the guarantee of the government of Pakistan.

Abdullah Hafeez Khan, the official spokesman for PIA, said, “Our credit rating has improved and purely based on our revenue improvements, we are going to get this loan.” A number of international banks including Noor Bank, Mashreq Bank, and Credit Suisse have agreed to provide the loan to our national carrier.

Like all other airline companies, Pakistan International Airlines also needs a large sum of finance in order to acquire new aircraft along with their engines as well as spare parts and more. All these things can only be bought in terms of dollars from the international market.

Mr. Khan additionally stated, “Whenever we needed money, the banks either wanted us to get them sovereign guarantee or to pledge our assets against the loan.”

The PIA spokesperson further said that taking the Pakistan government’s sovereign guarantee is a complicated process and it would easily take four to six months. Initially, they would need to make a request to the Ministry of Finance, they would then proceed it to the planning commission and at last, it will reach the State Bank of Pakistan.

Taking the revenue growth of the airline into account, a number of international banks are willing to help it grow.

While addressing the media, Abdullah Hafeez Khan, mentioned, “Because of our performance, and numbers of sales, revenue, and profits, which the banks have seen, the money lenders have agreed to extend the loans without government sovereign guarantee.”

The PIA spokesperson further clarified the situation calling it an investment in the country, he stated that the airline is taking a loan merely to purchase new aircraft and their engines. PIA would soon add new airplanes in its fleet as well as replace the engines of the old ones.

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