Pakistan International Airlines Flight Cancellations: Urgent Funding of 6.36 Billion Rupees Needed for Operations; Over 20 Billion Rupees Required
Pakistan International Airlines (PIA) is on the brink amid an economic crisis. PIA has had to ground 5 out of 13 leased planes in the past 13 months, with the possibility of grounding more in the near future, including 4 additional planes.
To operate effectively, PIA requires a substantial 23 billion Pakistani Rupees, equivalent to 636 million US dollars. Due to non-payment issues, many Gulf countries have also halted PIA flights. PIA needs over 20 billion Rupees, significantly exceeding its total assets, which are more than 5 times less.
If funds are not obtained, flights will be forced to ground.
According to Pakistan’s news website ‘Geo News,’ the director of PIA stated that if emergency funds are not provided in time, all airline flights will have to be canceled until September 15. Last week, PIA had mentioned that the supply of spare parts for aircraft by Boeing and Airbus could be halted until September. This was because PIA had not paid these companies earlier. According to Pakistan Today, due to non-payment issues, PIA had suspended flights at Saudi and Dubai airports.
However, when PIA provided a written assurance to conduct the payments, flight operations were approved. Officials stated that after the International Air Transport Association (IATA) received a $3.5 million payment guarantee, PIA’s flights resumed.
Pakistan to Award Islamabad Airport Contract
In the wake of this year’s approval of a $3 billion bailout package by the International Monetary Fund (IMF) and to avoid default, economically challenged Pakistan has decided to award the contract for Islamabad Airport. According to Geo News, Pakistan’s Aviation Minister Khawaja Saad Rafique shared this information in Parliament.
He stated that the airport’s improvement will involve granting a contract to private companies for a period of 15 years. Saad Rafique clarified that this doesn’t mean the government is selling the airport but rather involving private operators in its operations.
Pakistan Signs Concession Agreement for Karachi Port with UAE
Pakistan has signed the largest-ever concession agreement with the UAE regarding Karachi Port. The Pakistan government finalized this deal within just 4 days. The agreement spans 50 years. Under this, two UAE companies will invest approximately 180 billion Pakistani Rupees. It is believed that Pakistan is aiming to pool this investment for its emergency fund.
Karachi Port is the largest port in South Asia, and it is also Pakistan’s biggest and busiest port. The port is approximately 14 kilometers long and hosts a total of 33 berths, accommodating 30 dry cargo and 3 liquid cargo berths. A ‘berth’ refers to a platform where ships are anchored.
