The monthly losses of Pakistan International Airlines reached Rs12 billion as the finance ministry has refused to bear any more interest and losses on the national flag carrier’s debts, sources said.
The PIA has borrowed Rs260 from commercial banks on the government’s guarantee. The national airlines has to pay Rs8 billion monthly interest on loans it has secured from banks.
The monthly income of the national flag carrier is around Rs22 billion while its expenses are to the tune of Rs34 billion. It is in a loss of around Rs740 billion as per reports.
Amid a financial crunch, the PIA has not paid Rs1.25 billion in tax to the Federal Board of Revenue, while it also failed to pay Rs1 billion a month to the Civil Aviation Authority.
In this regard, the interim finance minister has sought a privatisation plan from the Privatization Division and the PIA administration.
A day earlier, the national flag carrier admitted it was struggling to pay bills and wages after local media reports said the fleet may be grounded within days.
Abdullah Hafeez, a spokesman for PIA, said the company was seeking urgent financial help from the treasury, but had secured funds “for the time being”.
“But we do struggle due to balance sheet challenges,” he said.