Due to fuel shortages, Pakistan International Airlines has canceled more than 500 flights in the last 11 days, putting the airline in danger of going out of business.
According to sources, the finance ministry has “directed” commercial banks to provide Pakistan International Airlines with new loans, and it has also “rescheduled” the government’s existing debt for a period of six months.
They add that the PIA would get new loans on the guarantee from the National Bank of Pakistan, the Bank of Punjab, and six other commercial banks. With the government’s guarantee, commercial banks have already granted a Rs260 billion loan to the national flag carrier.
According to the sources, the financing for Pakistan International Airlines would be postponed for six months, or until the national company is privatized.
The national flag carrier, Pakistan State Oil (PSO), has suspended gasoline supplies owing to unpaid dues, putting it in possibly the biggest crisis in its history.
Due to the change, the airline has had to cancel 537 flights as of October 13.
