Pakistan International Airlines' $78m bailout appeal rejected by state

Pakistan’s flag carrier, Pakistan International Airlines (PIA)’s appeal for a PKR 23b ($76m) bailout has been refused by the standing government. Yet another urgent appeal from the airline resulted in the government's direction to secure commercial bank loans instead. The government also suggested that the airline should develop a viable privatization plan that has been lingering for a long time. The airline officials recently met with Shamshad Akhtar, the interim finance minister of Pakistan, to inform them about the financial need the airline is facing. The airline showed a need for PKR 23b to rescue itself from growing losses. The finance minister instructed the airline that the government was prepared to provide a limited amount of PKR 13b ($43m) should the airline request commercial loans. In order to arrange bank loans, the airline must set up a restructuring plan for the airline. The operational areas that lead to financial losses must be reformed as part of the plan. Moreover, a viable privatization plan must be in place to guarantee commercial loans.<br/>