Pakistan International Airlines (PIA) has successfully paid the salaries of its employees by securing a significant bank loan of Rs. 17 billion, alleviating financial concerns for the national flag carrier.
- Administrative matters at PIA are operating smoothly following the acquisition of the bank loan.
- The secured funds will also facilitate payments to fuel suppliers and enable the purchase of spare parts for aircraft maintenance and repair.
- In addition to employee salaries, payments for leased aircraft have also been resumed.
- PIA currently faces substantial liabilities, totaling Rs. 743 billion or $2.5 billion, surpassing its total assets by five times, based on Bloomberg’s data.
Background: The financial stability of PIA has been a growing concern due to its significant financial liabilities. The recent loan acquisition has provided a temporary respite, but long-term financial sustainability remains a challenge for the airline.
Note: The figures and data mentioned are based on the latest available information.