Islamabad: A report in a local newspaper has revealed that the new Pakistan International Airlines (PIA) Chief Executive Dr Musharraf Rasool Cyan has been tasked with preparing and present a plan for the revival of the state-owned airline by mid of October.
PIA has been affected by massive losses and has liabilities of around Rs350b, of which a significant chunk was obtained in loans from banks which now stands outstanding and needs to be paid.
In August, it had been reported PIA had approached the government for a bailout package worth Rs10b and the government was considering increasing its sovereign guarantees to Rs172b.
To keep PIA operational, the government has been extending sovereign guarantees to PIA for obtaining loans from foreign and local banking institutions.
Economic Coordination Committee (ECC) had given the go-ahead to the request of the Aviation division of receiving an increase in sovereign guarantees from Rs151b to Rs161.5b in January. This allowed PIA to keep its operations afloat and be able to procure additional from banks to repay its liabilities.
The ECC also had formed a committee to prepare a finalized strategic plan which would help the ailing state-owned carrier to improve its profitability and operational performance.
During a meeting of the cabinet on the 22nd of August, Cyan was instructed to formulate a plan for the revival of PIA, which will have to be presented by mid-October.
