Pakistan seeks US Exim financing for PIA, Reko Diq projects

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ISLAMABAD – Pakistan is exploring financing from the US Export-Import Bank (US Exim) for Boeing aircraft for privatised Pakistan International Airlines (PIA), refinery modernisation and the Reko Diq copper and gold mining project in Balochistan, Finance Minister Muhammad Aurangzeb’s adviser Khurram Schehzad clarified the development.

Khurram Schehzad said the government was facilitating PIA’s access to international financing, aircraft manufacturers and suppliers, but was not purchasing planes for the airline or arranging taxpayer-funded loans.

His comments followed Aurangzeb’s meeting with US Exim Bank Chairman John Jovanovich in New York, where the two sides discussed possible financing for PIA aircraft, refinery upgrades and Reko Diq.

According to the Finance Ministry, Aurangzeb highlighted PIA’s interest in acquiring Boeing 787 Dreamliners and requested assistance in arranging financing for aircraft and engines. He also sought support for obtaining spare parts required to bring grounded Boeing 777 aircraft back into operation.

Schehzad said US Exim’s role was to promote US exports and employment by providing financing support to overseas buyers of American-made products, including commercial aircraft.

He explained that financing could potentially be secured against the aircraft, with the airline or lessee’s financial strength assessed as part of the process. Therefore, a sovereign guarantee would not necessarily be required.

The adviser stressed that the government’s role was to help PIA obtain access to international lenders, technology and suppliers rather than directly finance its operations.

PIA was privatised after an Arif Habib-led consortium acquired a 75% stake for Rs135 billion in an auction held on December 23, 2025. The transaction documents were signed on January 29, 2026, while management control was transferred to the consortium after the first financial closing on June 29.

The consortium committed Rs180 billion in total, including Rs55 billion payable to the government and Rs125 billion in fresh investment in PIA.

Schehzad said discussions with US Exim extended beyond PIA and formed part of broader Pakistan-US economic cooperation involving aviation, refinery development and Reko Diq.

He also rejected characterisations of the potential financing as a public loan, hidden subsidy or state-backed arrangement, saying no sovereign guarantee or government borrowing for PIA had been announced.

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