PIA raises $130m in fresh financing

‘Financing facility was arranged by UBL and Credit Suisse Singapore in addition to state-run NBP’


Afp November 28, 2016
PHOTO: FILE

KARACHI: The Pakistan International Airlines (PIA) said Monday it has raised $130 million in fresh financing from a banking consortium, as the national flag carrier staggers under the weight of earlier loans totalling more than $3 billion.

According to a statement, the financing facility was arranged by United Bank Limited (UBL) and Credit Suisse Singapore as lead bankers, in addition to the state-run National Bank of Pakistan.

"The (financing) facility... will be utilised by PIA for its general working capital requirements and in improvement in passenger services," the communiqué said. However, a PIA official requesting anonymity said the fresh loan might be utilised to help settle earlier loans.

PIA evaluating order for wide-body Airbus, Boeing jets

PIA's cumulative loans stand at around Rs329 billion, or $3.16 billion. It suffers heavy financial losses annually, posting Rs32 billion loss in 2015.

The federal government tried to privatise the airline earlier this year but its 18,000 employees fiercely resisted. Two employees were killed in February as police tried to clamp down on protesting employees outside the airline's head office in Karachi.

30% discount on late night domestic flights

Meanwhile, the state-run airline has announced a 30% special discount on its late night flights (between 0000 to 0600 hrs), a statement said.

A spokesperson said the discount on late night flights would be on selected domestic routes between Karachi-Lahore, Karachi-Islamabad, Karachi-Multan and Karachi-Faisalabad, effective from Monday, November 28, 2016.

COMMENTS (2)

Zubair Iqbal | 7 years ago | Reply I am a businessman in the UK & this is my solution to save Pakistan's Economy. It will save your Paid taxes which you pay with mobile & Electricity everyday and it will bring jobs and money back to you. Few Steps are important for 8% GDP growth Privatise PIA' 49% Share and bring Private board of Directors and decision makers. Privatise Railways 49% Shares. Privatise Steel Mill's 49% Shares. Privatise Wapda's 49% Shares. .... Your taxes gets burnt in the losses of these 4 animals. No return to you. Corruption comes afterwards.
Mango Man | 7 years ago | Reply Seriously! 130 Million is the kind of money startups raise in their second round of funding! For a national carrier, it must be really scraping the bottom!
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