The federal government has decided to launch Sukuk bonds in a bid to generate funds for the Pakistan International Airlines facing financial crunches triggered by restrictions since the coronavirus pandemic erupted.
The government, as per official documents, eyes to generate Rs20 billion through the 10-year Islamic bond.
“Shariah-compliant Secured Sukuk up to Rs20 billion inclusive of Rs5 billion greenshoe option, with subsequent listing (Privately Placed Listing) on the Pakistan Stock Exchange (“PIA Sukuk–I” or “Sukuk Issue”),” read the document.
A local media report citing sources said that PIA’s assets, including land, buildings, and ships, would be mortgaged as collateral for these bonds.
Earlier this year, Aviation Minister Ghulam Sarwar informed the National Assembly that the government was not going to privatise the national carrier.PIA
He said that the PTI government aimed at turning PIA into a self-reliant organisation, adding that efforts were being made to overcome the losses.
Back in June, reports emerged that PIA will get four new fuel-efficient aircraft this year as part of a business strategy to enhance the national flag- carrier’s performance.
The new narrow-body aircraft would be acquired on a 6-year dry lease, according to the sources, and would replace two old Boeing 777s. The PIA’s fleet will grow to 34 aircraft when new Airbus 320s arrive between July and December 2021, reports added.