- Web Desk
- 21 Minutes ago
PIA set to operate more flights
- Web Desk
- Oct 30, 2023
WEB DESK: In a significant move to alleviate Pakistan International Airline’s (PIA) financial distress, the national carrier announced on Monday that it would be able to resume more flights thanks to a credit line extension from Pakistan State Oil (PSO).
Last week, the state-owned oil company extended a credit relief of Rs500 million to PIA, which has been grappling with a severe financial crisis.
This relief comes as a crucial lifeline for the airline, which had to cancel hundreds of flights, leading to a staggering 70 per cent reduction in its daily revenue.
“The PIA’s disrupted operations are heading toward restoration after an improved fuel supply,” the national flag carrier said.
PIA anticipates that its flight operations will return to their normal schedule in the coming days, with further enhancements in fuel supply anticipated.
Before this relief, PIA was facing mounting pressure, paying Rs100 million daily to PSO for fuel purchases and accumulating a debt of Rs26.8 billion ($97.37 million) with the state-owned oil company.
To address these financial challenges, a crucial meeting was held on October 16 between senior officials from both state-owned entities to chart a way forward.
PIA has been reeling under the strain of severe financial difficulties, resulting in disruptions to more than 600 flights in recent days.
According to Geo News, the airline’s daily revenue plummeted from the previous Rs700 to Rs800 million to a mere Rs300 million.
Amid these challenges, the government is actively working to secure Rs8 billion in loan guarantees to stay within the agreed limits set by the International Monetary Fund (IMF), as reported by The News, citing insider sources.