Pakistan’s national flag carrier Pakistan International Airline (PIA) raised $130 million in fresh financing from a banking consortium, as the airline staggers under the weight of earlier loans totalling more than $3 billion, said a statement released by PIA on Monday.
Financing facility was arranged by Pakistan’s United Bank Limited (UBL) and Credit Suisse Singapore as lead bankers, in addition to the state-run National Bank of Pakistan (NBP).
“The (financing) facility… will be utilised by PIA for its general working capital requirements and in improvement in passenger services,” read the statement.
However, a PIA official requesting anonymity said the fresh loan might be utilised to help settle earlier loans.
PIA’s cumulative loans stand at around 329 billion rupees, or $3.16 billion. It suffers heavy financial losses annually, posting a 32 billion rupee loss in 2015.
Prime Minister Nawaz Sharif’s government tried to privatise the airline earlier this year but its 18,000 employees fiercely resisted.
Two employees were killed in February this year as police tried to clamp down on protesting employees outside the airline’s head office in Karachi.
PIA offers 30pc discount on late night flights
PIA on Monday also announced 30 per cent special discount on late night flights, from midnight to 6am, on selected domestic routes between Karachi-Lahore, Karachi-Islamabad, Karachi-Multan and Karachi-Faisalabad.
courtesy: dawn news