PIA seeks Rs15bn loan from banks as financial crisis deepens
Business
The finance ministry has refused to provide any guarantees, keeping in view the IMF conditions
(Web Desk) – National carrier Pakistan International Airlines (PIA) has sought State Bank’s assistance to get Rs15 billion loan from commercial banks to resolve its financial cricis, while the Civil Aviation Authority (CAA) contributed Rs5 billion to avoid operational issues.
The finance ministry has refused to provide any guarantees, keeping in view the IMF conditions and is even requesting the SBP for relaxing its regulation which is required to arrange Rs15 billion loans.
Meanwhile, the caretaker government is in a fix over privatization of the organization.
The finance ministry, bound by IMF requirements, encourages SBP to relax standards for the requested loans, while there is uncertainty about whether aid should be provided directly or delegated to other ministries.
On the other hand, the Ministry of Aviation wants the SBP to relax PR-8 rules for commercial banks, which are critical for instilling confidence and supporting government-guaranteed loan requirements.
