ISLAMABAD- The Economic Coordination Committee of Cabinet has approved bridge financing through Civil Aviation Authority’s resources worth 8 billion rupees for PIA to meet emergent requirements of the airline related to overdue payments.
The approval was granted at a meeting of the ECC held in Islamabad today, with Caretaker Minister for Finance, Revenue and Economic Affairs Dr. Shamshad Akhtar in the chair. The Aviation Division had submitted the proposal for provision of financial support to PIA through the Civil Aviation Authority. The ECC allowed the Aviation Division to proceed with the bilateral arrangement between the CAA and PIA.
The development took place after crisis of the national flag carrier got severe.
Dozens of national and international flights faced disruptions as Pakistan International Airlines (PIA) is facing hard times in clearing dues worth whopping Rs20 billion.
The country’s national flag carrier has been grappling with a major debt burden, which has made it challenging to finance its flight operations and to manage its fleet and facilities.
As the airlines’ woes piled up, its domestic flights from Karachi were canceled or delayed as the state-owned airline failed to pay Pakistan State Oil (PSO) for fuel supply. Amid the haphazard situation, Pakistan International Airlines (PIA) has approached the federal government for quick funds.
Beside the flight operations, officials and staffers of the country’s largest airline had also not been paid their salaries. Ministry of Finance and other officials reportedly assured to release of the salaries of the employees.
PIA is facing a threat to ground more than a dozen planes as the airline failed to clear dues worth up to Rs20 billion.
