The Economic Coordination Committee (ECC) of the Cabinet has approved Rs 4 billion Technical Supplementary grants to overcome cash flow problems of PIA.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of ECC today. The Aviation Division requested the ECC to release pending claims of PIAC amounting to Rs 22.94 billion on account of markup up to June 2023 enabling it to overcome its cash flow issues.
Recently, Malaysia detained one of PIA aircraft which was later released under court order, similarly, another lessor filed a lawsuit for non-payment in a US court.
Some other lessors including IATA has issued warning for payment of its outstanding dues of $2.8 million which was also made on June 23, 2034 with great difficulty so aviation division told the ECC that it will not be possible for PIA to continue its operations if markup amounting of Rs22.9 billion is not immediately released.
Earlier this year, the national airline disclosed their annual earnings report for the year ending 2022 to the Pakistan Stock Exchange (PSX) on May 19. The firm concluded the year with a consolidated loss of Rs 97.23 billion and an unconsolidated loss of Rs 88 billion for year-on-year (YoY) increases of 82% and 76%, respectively.
