Islamabad okays added Rs15bn in gov't guarantees to PIA

Pakistan's Economic Coordination Committee has approved increasing the government guarantee for PIA by PKR15b (US$53.6m). Last week, ch-aviation reported on the proposed increase, along with another PKR29b (US$103.7m) in financial assistance the state-owned airline has requested. To date, PIA had secured government guarantees of PKR248b (US$887m) but they are fully utilized and the airline had said it need the additional guarantees to secure further loans to keep the it airborne. The EEC meeting, chaired by Pakistan's Finance Minister Ishaq Dar, was held on April 13, 2023. Meanwhile, Saudi airport authorities have sent out final notices to several airlines, including PIA, regarding US$40m in unpaid airport fees. Saudi Arabia's General Authority of Civil Aviation has threatened to suspend landing rights unless the arrears are paid. Saudi Arabia is a major market for PIA, with the carrier providing approximately 45,000 seats a week on 24 routes between the two countries.<br/>