Pakistan rejects rescue of national airline
The Islamabad government has suggested developing a solid privatization plan
Pakistan's government has rejected a 77 million dollars bailout plan to stave off the bankruptcy of national carrier Pakistan International Airlines. The Islamabad government has suggested developing a solid privatization plan for the airline with loans guaranteed by commercial banks, as the company's current corporate form is no longer economically sustainable.
The airline's management recently met Pakistan's acting finance minister, Shamshad Akhtar, to brief them on the financial needs the airline is facing. The ministry has made it known that it is ready to put about 43 million dollars on the line only if the airline makes use of bank loans, thus rejecting the air carrier's urgent appeal.
To obtain bank loans, the airline would now have to prepare a restructuring plan that could reform the organization of some operational areas that generate the greatest financial losses. Furthermore, a new privatization plan must be implemented (the previous was blocked in 2016) to guarantee the banks the repayment of any loans granted.
AVIONEWS - World Aeronautical Press Agency