Pakistan has taken a major step in reforming its aviation sector with the successful privatization of a 75% stake in Pakistan International Airlines. A consortium led by Arif Habib Corporation emerged as the highest bidder, offering 135 billion Pakistani rupees in a closely watched auction. The deal marks a breakthrough in the government's long-delayed efforts to privatise the national carrier.


Pakistan sells 75% stake in PIA in landmark privatisation deal 

Pakistan Prime Minister’s Adviser on Privatisation, Muhammad Ali, rejected criticism over the privatisation of state carrier Pakistan International Airlines (PIA) and said that the move does not undermine national pride but aims to restore the carrier’s lost strength and efficiency. Ali said that claims circulating on social media suggesting that the airline was sold for less than the value of its aircraft were incorrect and misleading, adding that such assertions do not reflect the facts of the privatisation process. Ali was addressing a joint press conference with Federal Information Minister Atta Tarar on Wednesday. The remarks came a day after a consortium led by Arif Habib Corporation emerged as the top bidder for a 75% stake in the national carrier by offering Rs 135 billion. The government would get 7.5% in cash and 25% in equity value.&nbsp;Also Read: <a href="https://www.wionews.com/world/yearender-2025-the-year-of-wars-tariff-turmoil-and-climate-disasters-1766568207775">Yearender 2025: The year of wars, tariff turmoil, and climate disasters</a>&nbsp;“In total, the valuation of PIA is Rs 180 billion. So our structuring was such that we get Rs 10 billion in cash and the value of our equities is Rs 45 billion. So the government will get Rs 55 billion in total, and Rs 125 billion will flow back into PIA,” he said.The deal was structured to inject fresh capital into the airline rather than just transfer ownership. “We did not want a situation where the government sells the airline, takes money, and the company still collapses,” Ali said.&nbsp;Also Read: <a href="https://www.wionews.com/world/hindu-rickshaw-puller-wearing-red-thread-branded-raw-agent-assaulted-by-mob-in-bangladesh-1766322679454">Hindu rickshaw puller wearing red thread branded ‘RAW agent’, assaulted by mob in Bangladesh</a>&nbsp;He clarified that the impression that there were no liabilities in PIA was incorrect. “We are transferring Rs 180 billion in liabilities to the new buyer,” he said, adding that the government had removed the long-term debt otherwise, nobody would have come forward to buy the airline.The PIA privatisation was a key test of Pakistan’s reform credibility with the IMF.&nbsp;<h2>‘New owner will be running PIA by April’</h2>&nbsp;The government expects the new owner will be running the airline by April, subject to approvals, Ali told Reuters.The process now moves to final approvals by the Privatisation Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions.&nbsp;<h2>Consortium led by Arif Habib Corporation emerged as highest bidder</h2>&nbsp;Arif Habib and Lucky Cement consortia advanced to the open auction stage after placing offers above the reference price of Rs 100 billion, while private airliner Airblue exited after submitting Rs 26.5 billion offer.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/-after-all-shri-hanuman-finally-serves-replies-eam-when-asked-if-india-needs-more-than-one-jaishankar-1766243874365">‘After all, Shri Hanuman finally serves…,’ replies EAM when asked if India needs more than one Jaishankar? WATCH</a>&nbsp;The winning consortium also comprises fertiliser maker Fatima, private school network City Schools, and real estate firm Lake City Holdings Limited.Ali said Fauji Fertiliser Company did not bid but could still join the winning consortium as a partner. The buyer can add up to two partners, including a consortium partner or a foreign airline, if they meet the qualifying criteria. Fauji Fertliser was initially in the race but opted out later.&nbsp;<h2>‘PIA incurred losses of Rs 500bn from 2015 to 2024’</h2>&nbsp;Ali said the process for the “strategic sale” of PIA was initiated 20 years ago, and an attempt to sell it had been made last year also but was not successful.He recalled that 50 years ago, PIA was operating around 50 aircraft, and the number should have increased to 100-115 by now, but it was operating just 18 planes.Ali also pointed out that from 2015 to 2024, the airline incurred losses of Rs 500 billion over a period of 10 years.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/unnao-rape-survivor-s-mother-manhandled-during-protest-dead-society-says-rahul-1766580698106">Unnao rape survivor’s mother manhandled during protest; ‘Dead society’, says Rahul</a>&nbsp;

Pakistan PM’s adviser recalled that 50 years ago, PIA was operating around 50 aircraft, and the number should have increased to 100-115 by now, but it was operating just 18 planes. Besides, the airline incurred losses of Rs 500 billion over a period of 10 years from 2015 to 2024.

Pakistan Prime Minister’s Adviser on Privatisation, Muhammad Ali, rejected criticism over the privatisation of state carrier Pakistan International Airlines (PIA) and said that the move does not undermine national pride but aims to restore the carrier’s lost strength and efficiency. Ali said that claims circulating on social media suggesting that the airline was sold for less than the value of its aircraft were incorrect and misleading, adding that such assertions do not reflect the facts of the privatisation process. Ali was addressing a joint press conference with Federal Information Minister Atta Tarar on Wednesday. The remarks came a day after a consortium led by Arif Habib Corporation emerged as the top bidder for a 75% stake in the national carrier by offering Rs 135 billion. The government would get 7.5% in cash and 25% in equity value. Also Read: Yearender 2025: The year of wars, tariff turmoil, and climate disasters “In total, the valuation of PIA is Rs 180 billion. So our structuring was such that we get Rs 10 billion in cash and the value of our equities is Rs 45 billion. So the government will get Rs 55 billion in total, and Rs 125 billion will flow back into PIA,” he said. The deal was structured to inject fresh capital into the airline rather than just transfer ownership. “We did not want a situation where the government sells the airline, takes money, and the company still collapses,” Ali said. Also Read: Hindu rickshaw puller wearing red thread branded ‘RAW agent’, assaulted by mob in Bangladesh He clarified that the impression that there were no liabilities in PIA was incorrect. “We are transferring Rs 180 billion in liabilities to the new buyer,” he said, adding that the government had removed the long-term debt otherwise, nobody would have come forward to buy the airline. The PIA privatisation was a key test of Pakistan’s reform credibility with the IMF. ‘New owner will be running PIA by April’ The government expects the new owner will be running the airline by April, subject to approvals, Ali told Reuters. The process now moves to final approvals by the Privatisation Commission board and the cabinet, expected within days, with contract signing likely within two weeks and financial close after a 90-day period to meet regulatory and legal conditions. Consortium led by Arif Habib Corporation emerged as highest bidder Arif Habib and Lucky Cement consortia advanced to the open auction stage after placing offers above the reference price of Rs 100 billion, while private airliner Airblue exited after submitting Rs 26.5 billion offer. Also Read: ‘After all, Shri Hanuman finally serves…,’ replies EAM when asked if India needs more than one Jaishankar? WATCH The winning consortium also comprises fertiliser maker Fatima, private school network City Schools, and real estate firm Lake City Holdings Limited. Ali said Fauji Fertiliser Company did not bid but could still join the winning consortium as a partner. The buyer can add up to two partners, including a consortium partner or a foreign airline, if they meet the qualifying criteria. Fauji Fertliser was initially in the race but opted out later. ‘PIA incurred losses of Rs 500bn from 2015 to 2024’ Ali said the process for the “strategic sale” of PIA was initiated 20 years ago, and an attempt to sell it had been made last year also but was not successful. He recalled that 50 years ago, PIA was operating around 50 aircraft, and the number should have increased to 100-115 by now, but it was operating just 18 planes. Ali also pointed out that from 2015 to 2024, the airline incurred losses of Rs 500 billion over a period of 10 years. Also Read: Unnao rape survivor’s mother manhandled during protest; ‘Dead society’, says Rahul

Pakistan PM’s adviser recalled that 50 years ago, PIA was operating around 50 aircraft, and the number should have increased to 100-115 by now, but it was operating just 18 planes. Besides, the airline incurred losses of Rs 500 billion over a period of 10 years from 2015 to 2024.

Pakistan PM‘s adviser rejects claims of PIA being sold at less value, says new owners to run airline from April

On Monday (Dec 15), Pakistan’s Fauji Fertiliser Company announced its interest in acquiring stake in the loss-making national carrier Pakistan International Airlines (PIA). The information is in accordance with a filing with the Pakistan Stock Exchange (PSX). The fertiliser company is a unit of the army-run Fauji Foundation.&nbsp;On December 23, the country will be making a second attempt to sell the loss-making airline. PIA is being privatised under the $7 billion International Monetary Fund (IMF) bailout plan. Earlier in 2024, a similar bid had taken place to sell the airline founded in 1946. Before running into controversies, PIA once had a good image.&nbsp;In January 2025, the airline published an advertisement celebrating the resumption of flights to Paris from Islamabad. The post read, “Paris, we're coming today,” and it was the visual that attracted flak. With the PIA flight moving towards the Eiffel Tower, netizens drew parallels to the 9/11 attacks.

On December 23, the country will be making a second attempt to sell the loss-making airline. PIA is being privatised under the $7 billion International Monetary Fund (IMF) bailout plan.

On Monday (Dec 15), Pakistan’s Fauji Fertiliser Company announced its interest in acquiring stake in the loss-making national carrier Pakistan International Airlines (PIA). The information is in accordance with a filing with the Pakistan Stock Exchange (PSX). The fertiliser company is a unit of the army-run Fauji Foundation. On December 23, the country will be making a second attempt to sell the loss-making airline. PIA is being privatised under the $7 billion International Monetary Fund (IMF) bailout plan. Earlier in 2024, a similar bid had taken place to sell the airline founded in 1946. Before running into controversies, PIA once had a good image. In January 2025, the airline published an advertisement celebrating the resumption of flights to Paris from Islamabad. The post read, “Paris, we're coming today,” and it was the visual that attracted flak. With the PIA flight moving towards the Eiffel Tower, netizens drew parallels to the 9/11 attacks.

On December 23, the country will be making a second attempt to sell the loss-making airline. PIA is being privatised under the $7 billion International Monetary Fund (IMF) bailout plan.

Pak army-run fertiliser company in race to buy state-carrier PIA

Pakistan International Airlines, the country's national flag carrier, continued to face flight disruptions on Wednesday due to the ongoing dispute with aircraft engineers.

Pakistan Struggles To Revive National Carrier

The United Kingdom on Wednesday (Jul 16) lifted the ban on Pakistani airlines, ending a five-year-long restriction on the country’s national carrier, said the British High Commission in Islamabad. Pakistan International Airlines was barred from Britain in June 2020 after one of its aircraft crashed into a Karachi street, killing nearly 100 people. The UK cited improvements in aviation safety standards implemented by Islamabad authorities in its recent move to end the ban, allowing Pakistani airlines to apply to resume UK flights. The decision comes months after the European Union lifted similar restrictions.&nbsp;The British High Commission added that the decision to de-list states and air carriers was made “through an independent aviation safety process.”&nbsp;“Based on this independent and technically-driven process, it has decided to remove Pakistan and its air carriers from the (UK Air Safety) List,” it said in a statement.&nbsp;<h2>Why was Pakistani airlines banned in the UK?</h2>&nbsp;The Pakistan International Airlines (PIA) plane crash in Karachi in May 2020 was attributed to human error by the pilots and air traffic control. Following the disaster that cost 97 lives, it was found that nearly one-third of the country’s pilots had obtained their flying licenses through fraudulent means.&nbsp;After the Pakistani Aviation Minister Ghulam Sarwar Khan made the shocking revelation about fake documentation, the European Union Aviation Safety Agency imposed a ban on the country’s airlines.&nbsp;It is estimated that the suspension has resulted in losses of about 40 billion rupees ($144 million) in annual revenue of the airlines, which once saw profitable UK routes, including London, Birmingham, and Manchester.&nbsp;PIA, which employs 7,000 people, has been accused of being bloated and poorly run, with a poor safety record and regulatory issues and unpaid bills. The UK’s latest decision comes as the Pakistani government seeks to privatise the debt-ridden airline, scrambling to find a buyer.&nbsp;According to reports, a deal fell through in 2024 when a potential buyer offered a fraction of the price which the government demanded. PIA was formed in 1955 and witnessed rapid growth until the 1990s. However, the state-owned airlines started making a loss in the following years.&nbsp;<h2>Pakistan welcomes UK’s move to lift ban on airline</h2>&nbsp;The move was welcomed by the Pakistani Prime Minister Shehbaz Sharif, who hailed the decision as “an important milestone for the country.” In a statement, he added, “The lifting of the ban on Pakistani flights by the UK is a source of relief for Pakistanis residing in Britain.”&nbsp;Responding to the announcement, the PIA said it would resume services to Britain in “the shortest possible time” with the first flights operating from Islamabad to Manchester.&nbsp;Meanwhile, Aviation Minister Khawaja Asif acknowledged losses incurred due to the ban. “Confidence is being restored in Pakistani airlines once again,” he said at a news conference in Islamabad.

PIA was formed in 1955 and witnessed rapid growth until the 1990s. However, the state-owned airlines started making a loss in the following years.

The United Kingdom on Wednesday (Jul 16) lifted the ban on Pakistani airlines, ending a five-year-long restriction on the country’s national carrier, said the British High Commission in Islamabad. Pakistan International Airlines was barred from Britain in June 2020 after one of its aircraft crashed into a Karachi street, killing nearly 100 people. The UK cited improvements in aviation safety standards implemented by Islamabad authorities in its recent move to end the ban, allowing Pakistani airlines to apply to resume UK flights. The decision comes months after the European Union lifted similar restrictions. The British High Commission added that the decision to de-list states and air carriers was made “through an independent aviation safety process.” “Based on this independent and technically-driven process, it has decided to remove Pakistan and its air carriers from the (UK Air Safety) List,” it said in a statement. Why was Pakistani airlines banned in the UK? The Pakistan International Airlines (PIA) plane crash in Karachi in May 2020 was attributed to human error by the pilots and air traffic control. Following the disaster that cost 97 lives, it was found that nearly one-third of the country’s pilots had obtained their flying licenses through fraudulent means. After the Pakistani Aviation Minister Ghulam Sarwar Khan made the shocking revelation about fake documentation, the European Union Aviation Safety Agency imposed a ban on the country’s airlines. It is estimated that the suspension has resulted in losses of about 40 billion rupees ($144 million) in annual revenue of the airlines, which once saw profitable UK routes, including London, Birmingham, and Manchester. PIA, which employs 7,000 people, has been accused of being bloated and poorly run, with a poor safety record and regulatory issues and unpaid bills. The UK’s latest decision comes as the Pakistani government seeks to privatise the debt-ridden airline, scrambling to find a buyer. According to reports, a deal fell through in 2024 when a potential buyer offered a fraction of the price which the government demanded. PIA was formed in 1955 and witnessed rapid growth until the 1990s. However, the state-owned airlines started making a loss in the following years. Pakistan welcomes UK’s move to lift ban on airline The move was welcomed by the Pakistani Prime Minister Shehbaz Sharif, who hailed the decision as “an important milestone for the country.” In a statement, he added, “The lifting of the ban on Pakistani flights by the UK is a source of relief for Pakistanis residing in Britain.” Responding to the announcement, the PIA said it would resume services to Britain in “the shortest possible time” with the first flights operating from Islamabad to Manchester. Meanwhile, Aviation Minister Khawaja Asif acknowledged losses incurred due to the ban. “Confidence is being restored in Pakistani airlines once again,” he said at a news conference in Islamabad.

Pakistan International Airlines was formed in 1955 and witnessed rapid growth until the 1990s. However, the state-owned airlines started making a loss in the following years.

Britain lifts ban on Pakistani airlines – Here’s why PIA was barred from UK 5 years ago

The Pakistan government is making another bit to sell the national airline, Pakistan International Airlines (PIA), reported Dawn.
Previous efforts to privatise the airline saw a sole investor with a bid of $36 million, much lower than the expectations of officials. The lack of interest among the buyers was due to various reasons, including the 18 per cent general sales tax (GST) on the purchase.
According to Dawn, the National Assembly Stan&shy;ding Committee on Privatisation was informed by the government on Monday (Feb 3) that the GST has been removed from the purchase of new aircraft in an effort to attract investors.
Also read | <a href="https://www.wionews.com/south-asia/pakistan-to-become-worlds-third-most-populous-nation-overtaking-us-russia-by-2050-despite-fertility-drop-8689048">Pakistan to become world&rsquo;s third-most populous nation, overtaking US, Russia by 2050 despite fertility drop</a>
&ldquo;The Privatisation Commission chairman informed the committee that the IMF agreed to remove the tax after the government presented its concerns,&rdquo; reported Dawn.
PIA&rsquo;s liabilities amounted to $162.3 million as per the data given to the standing committee.&nbsp;
The bidding process does not include the non-core assets of the airline, and separate policies would be drawn out for them in an effort to formulate a mechanism to ensure the airline&rsquo;s financial burden does not hinder potential buyers.
Two to three options were proposed to the Cabinet Com&shy;mittee on Privatisation (CCoP) by the policy consultant, one of which will be adopted for the non-core assets.
Also read | <a href="https://www.wionews.com/south-asia/pakistani-pms-aide-alleged-imran-khans-letter-to-coas-chief-aimed-at-creating-rift-between-army-and-public-8688850">Imran Khan's letter to COAS chief aimed at creating rift between Army and public, Pakistani PM's aide alleges</a>
The committee also held talks about the Privatisation Commission (Amendment) Bill 2024 and questioned some of its provisions. It also clarified from the Ministry of Law whether the prime minister had the authority to make the decisions on privatisation instead of the cabinet and asked the ministry to present relevant details in the next meeting.
<h2>Development of airports</h2>
According to Dawn, the Pakistan Airports Authority (PAA) has announced plans to develop and modernise three airports. It also said that a new greenfield would be constructed at the DI Khan airport.
Along with national consultants, international experts from Japan and Switzerland have also been engaged for the projects, a PAA spokesperson said in a statement on Monday (Feb 3).
(With inputs from agencies)

South Asia | Pakistan: According to Dawn, the National Assembly Stan­ding Committee on Privatisation was informed by the government on Monday (Feb 3) that the GST has been removed from the purchase of new aircraft in an effort to attract investors.

The Pakistan government is making another bit to sell the national airline, Pakistan International Airlines (PIA), reported Dawn. Previous efforts to privatise the airline saw a sole investor with a bid of $36 million, much lower than the expectations of officials. The lack of interest among the buyers was due to various reasons, including the 18 per cent general sales tax (GST) on the purchase. According to Dawn, the National Assembly Standing Committee on Privatisation was informed by the government on Monday (Feb 3) that the GST has been removed from the purchase of new aircraft in an effort to attract investors. Also read | Pakistan to become world’s third-most populous nation, overtaking US, Russia by 2050 despite fertility drop “The Privatisation Commission chairman informed the committee that the IMF agreed to remove the tax after the government presented its concerns,” reported Dawn. PIA’s liabilities amounted to $162.3 million as per the data given to the standing committee. The bidding process does not include the non-core assets of the airline, and separate policies would be drawn out for them in an effort to formulate a mechanism to ensure the airline’s financial burden does not hinder potential buyers. Two to three options were proposed to the Cabinet Committee on Privatisation (CCoP) by the policy consultant, one of which will be adopted for the non-core assets. Also read | Imran Khan's letter to COAS chief aimed at creating rift between Army and public, Pakistani PM's aide alleges The committee also held talks about the Privatisation Commission (Amendment) Bill 2024 and questioned some of its provisions. It also clarified from the Ministry of Law whether the prime minister had the authority to make the decisions on privatisation instead of the cabinet and asked the ministry to present relevant details in the next meeting. Development of airports According to Dawn, the Pakistan Airports Authority (PAA) has announced plans to develop and modernise three airports. It also said that a new greenfield would be constructed at the DI Khan airport. Along with national consultants, international experts from Japan and Switzerland have also been engaged for the projects, a PAA spokesperson said in a statement on Monday (Feb 3). (With inputs from agencies)

Pakistan government makes another bid to privatise PIA

Pakistan International Airlines (PIA) is once again up for a privatisation bid after a failed attempt due to low investor interest. Watch this report for more details!

Pakistan fails to find buyers for its struggling airline

Pakistani Prime Minister Shehbaz Sharif has ordered an investigation after the Pakistan International Airlines (PIA) published an advertisement about its trip to Paris which evoked imagery of the 9/11 attacks.
According to a report by The Guardian early Thursday (Jan 16), Pakistani Minister Ishaq Dar called the PIA's advertisement "stupidity" and confirmed that PM Sharif has directed a probe into the scandal.
&ldquo;The prime minister has directed [authorities] to investigate who conceived this ad,&rdquo; Minister Dar said.
<h2>A look at the controversial advertisment</h2>
A few days back, the PIA shared a post on X that it was resuming flights from Islamabad to Paris from January 10.
Though the post just meant a travel route update, the photo accompanying the details evoked massive controversy.
Also read | <a href="https://www.wionews.com/trending/info-or-warning-pakistan-international-airlines-eiffel-tower-ad-draws-911-comparisons-8608894" rel="dofollow">'Info or warning?': Pakistan International Airlines' Eiffel Tower ad draws 9/11 comparisons</a>
The photo depicted a PIA aircraft headed towards the Eiffel Tower with the tagline &ldquo;Paris, we&rsquo;re coming today.&rdquo;
Users on X were quick to criticise the image, saying it resembled the attacks of September 11, 2001, when planes struck the Twin Towers in New York.
The advertisement has still not been taken down by the PIA.&nbsp;
<blockquote class="twitter-tweet">
<a href="https://t.co/qUoNCyL385">pic.twitter.com/qUoNCyL385</a>
&mdash; PIA (@Official_PIA) <a href="https://twitter.com/Official_PIA/status/1877555588533485884?ref_src=twsrc%5Etfw">January 10, 2025</a></blockquote>

<script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Omar Quraishi, a former political media adviser, said on X that he was &ldquo;truly speechless&rdquo; that the advert had been approved. &ldquo;Did the airline management not vet this?&rdquo; he said.
<h2>Not the first time PIA has made headlines</h2>
This was not the first time that the PIA has made headlines. Recently, the airline was banned by the European Union (EU) for over four years after it emerged that nearly a third of its pilots had cheated in their exams and failed to follow safety procedures.&nbsp;
In 2017, the company attracted scandal after PIA staff members sacrificed a goat on the tarmac for good luck. &nbsp;(With inputs from agencies)
&nbsp;

Pakistan | South Asia: A few days back, the PIA shared a post on X that it was resuming flights from Islamabad to Paris on January 10. The photo accompanying the post triggered massive backlash. 

Pakistani Prime Minister Shehbaz Sharif has ordered an investigation after the Pakistan International Airlines (PIA) published an advertisement about its trip to Paris which evoked imagery of the 9/11 attacks. According to a report by The Guardian early Thursday (Jan 16), Pakistani Minister Ishaq Dar called the PIA's advertisement "stupidity" and confirmed that PM Sharif has directed a probe into the scandal. “The prime minister has directed [authorities] to investigate who conceived this ad,” Minister Dar said. A look at the controversial advertisment A few days back, the PIA shared a post on X that it was resuming flights from Islamabad to Paris from January 10. Though the post just meant a travel route update, the photo accompanying the details evoked massive controversy. Also read | 'Info or warning?': Pakistan International Airlines' Eiffel Tower ad draws 9/11 comparisons The photo depicted a PIA aircraft headed towards the Eiffel Tower with the tagline “Paris, we’re coming today.” Users on X were quick to criticise the image, saying it resembled the attacks of September 11, 2001, when planes struck the Twin Towers in New York. The advertisement has still not been taken down by the PIA. pic.twitter.com/qUoNCyL385 — PIA (@Official_PIA) January 10, 2025 Omar Quraishi, a former political media adviser, said on X that he was “truly speechless” that the advert had been approved. “Did the airline management not vet this?” he said. Not the first time PIA has made headlines This was not the first time that the PIA has made headlines. Recently, the airline was banned by the European Union (EU) for over four years after it emerged that nearly a third of its pilots had cheated in their exams and failed to follow safety procedures. In 2017, the company attracted scandal after PIA staff members sacrificed a goat on the tarmac for good luck. (With inputs from agencies)

Pakistan PM Sharif orders probe after PIA's Paris ad stokes controversy

The backlash on social media raised by the ad on the resumption of Pakistan state-run PIA flights to Paris has prompted Pakistan Prime Minister Shehbaz Sharif to step in. The social media post was criticized online due to its resemblance to the 9/11 terror attacks in the United States. Watch in for more details!

Pakistan: PM Shehbaz Sharif orders investigation into PIA advertisement

Pakistan PM orders inquiry into PIA's controversial advertisement

Pakistan PM Shehbaz Sharif orders investigation into controversial advertisement

Pakistan International Airlines is taking steps to expand its fleet and enhance operations as part of its revival strategy. The national carrier, which holds a 23% share of Pakistan's domestic aviation market, recently inducted a newly refurbished Airbus 320 into its fleet. Watch in for more details!



PIA Plans Revival With Fleet Upgrades & Service Enhancements

Pakistan International Airlines is taking steps to expand its fleet and enhance operations as part of its revival strategy. The national carrier, which holds a 23% share of Pakistan's domestic aviation market, recently inducted a newly refurbished Airbus 320 into its fleet. Watch in for more details!

Pakistan International Airlines (PIA), has reportedly suffered substantial financial losses, attributed to organised mismanagement and fraudulent practices over a decade, according to a recent report from the Auditor General of Pakistan. Watch this report for more details!

Pakistan: Audit Unveils Severe Mismanagement at International Airlines

Pakistan has delayed the auction for its national carrier, Pakistan international airlines, to October 31. Originally scheduled for this week, the bidding has been rescheduled following requests from bidders for additional time to review the terms and conditions.

Pakistan Postpones National Airline Auction To Late October

A disturbing incident was reported from Pakistan where a Pakistan International Airlines (PIA) flight from Islamabad to Skardu left the body of a child at the Islamabad International Airport, while the parents continued their journey.

A disturbing incident was reported from Pakistan where a Pakistan International Airlines (PIA) flight from Islamabad to Skardu left the body of a child at the Islamabad International Airport, while the parents continued their journey. A report by the Dawn said on Friday (May 10) that the six-year-old boy's parents were shocked and fainted at the Skardu airport when they came to know that the PIA staff forgot to put their child's body on the aircraft. The report said that the boy, a resident of Kharmang district's Katshi village, was diagnosed with a brain tumour at a hospital in Skardu and doctors referred him to Rawalpindi for treatment in April. The chaos that unfolded His parents took him to Rawalpindi, and the six-year-old was undergoing treatment at the Benazir Bhutto Hospital for weeks. However, the child died on Thursday. The parents then decided to transport his body to Katshi for burial. They booked a PIA flight for Friday and confirmed their tickets on flight PK-451 from Islamabad to Skardu. Also read | Protests erupt in Pakistan-occupied Kashmir over inflation and other economic hardships They brought the body to the Islamabad International Airport at 6 am local time and completed the cargo procedure for the body after fulfilling SOPs and the airline’s rules and making the payment, the report added. A relative of the child told Dawn that the body was scheduled to be transported with the parents to Skardu from Islamabad at 9 am. The relative said that the flight got delayed for four hours. The flight took off at 1 pm and upon arrival at the Skardu airport at 2 pm, the parents were informed that mistakenly the body was not loaded on the aircraft and left behind at the Islamabad airport. This announcement sparked outrage and the boy's relatives started protesting at the Skardu airport. The PIA staff and other airport authorities tried to calm the boy's parents and relatives and assured them they would bring back the body on Saturday. The PIA staff said that the company which handles cargo at the airport was responsible for this blunder. The airline assured the family that action would be taken against that company. 'Flight was delayed to accommodate minister' Another relative of the boy told the publication that a federal minister was scheduled to fly to Gilgit from Islamabad on Friday, adding that the PIA flight from Islamabad to Gilgit couldn’t operate due to bad weather. The relative said that the minister changed his plan and decided to go to Skardu and kept the passengers waiting. The relative added that flight PK-451 was delayed till 1 pm to accommodate the minister. (With inputs from agencies)

PIA flight left child's body at Pak airport while parents continued journey

The national flag carrier of Pakistan, PIA, issued compliance orders to its pilots and cabin crew personnel. The order bars&nbsp;them from observing fasts during the ongoing holy month of Ramadan on the days of their duties.

The airline cited a medical guideline stating that fasting can lead to dehydration and issues of laziness and sleep.

The Corporate Safety Management and Air Crew Medical Centre recommended that PIA pilots and cabin crew members should not observe fasts while on duty for international or domestic flights.

“The PIA's top management, based on these recommendations, has issued compliance orders to the pilots and cabin crew personnel with immediate effect,” an official of the ailing airline said.

“The recommendations have specifically stated that when a person is fasting, he faces dehydration and issues of laziness and sleep,” the official added.

The directive comes after a probe team of the Aircrafts Investigation Board concluded its investigation into an accident of a PIA Airbus flight which crashed in a crowded neighbourhood of a housing society near the Karachi Airport in May 2020.

The team attributed the mishap to human errors.

The board stated that the primary cause of the fatal incident, that claimed the lives of 101 people onboard the flight, was the lack of sound judgement by the two pilots during the landing.

Miraculously two of the passengers&nbsp;survived.

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pak-court-allows-imran-khan-to-meet-party-lawyers-at-adiala-jail-report-700178">Pak court allows Imran Khan to meet party lawyers at Adiala jail: Report</a>

The report also held responsible the PIA and the Civil Aviation Authority over the lack of clear procedures on whether pilots should observe fasts while on duty during the holy month of Ramadan.

The PIA management, in its directive, clarified that pilot or crew members observing fast would be barred from boarding the flight.

Last week, Pakistan's new Prime Minister Shehbaz Sharif, as per several local media reports&nbsp;approved the privatisation of PIA before June 15.

In the year 2022, PIA ranked as Pakistan's third-highest public sector loss-making commodity, demanding&nbsp;Pakistani Rs 11.5 billion per month in order to service its debts, reported the Express Tribune newspaper.

(With inputs from agencies)

The national flag carrier of Pakistan, PIA, issued compliance orders to its pilots and cabin crew personnel. The order bars them from observing fasts during the ongoing holy month of Ramadan on the days of their duties.

The national flag carrier of Pakistan, PIA, issued compliance orders to its pilots and cabin crew personnel. The order bars them from observing fasts during the ongoing holy month of Ramadan on the days of their duties. The airline cited a medical guideline stating that fasting can lead to dehydration and issues of laziness and sleep. The Corporate Safety Management and Air Crew Medical Centre recommended that PIA pilots and cabin crew members should not observe fasts while on duty for international or domestic flights. “The PIA's top management, based on these recommendations, has issued compliance orders to the pilots and cabin crew personnel with immediate effect,” an official of the ailing airline said. “The recommendations have specifically stated that when a person is fasting, he faces dehydration and issues of laziness and sleep,” the official added. The directive comes after a probe team of the Aircrafts Investigation Board concluded its investigation into an accident of a PIA Airbus flight which crashed in a crowded neighbourhood of a housing society near the Karachi Airport in May 2020. The team attributed the mishap to human errors. The board stated that the primary cause of the fatal incident, that claimed the lives of 101 people onboard the flight, was the lack of sound judgement by the two pilots during the landing. Miraculously two of the passengers survived. Also read: Pak court allows Imran Khan to meet party lawyers at Adiala jail: Report The report also held responsible the PIA and the Civil Aviation Authority over the lack of clear procedures on whether pilots should observe fasts while on duty during the holy month of Ramadan. The PIA management, in its directive, clarified that pilot or crew members observing fast would be barred from boarding the flight. Last week, Pakistan's new Prime Minister Shehbaz Sharif, as per several local media reports approved the privatisation of PIA before June 15. In the year 2022, PIA ranked as Pakistan's third-highest public sector loss-making commodity, demanding Pakistani Rs 11.5 billion per month in order to service its debts, reported the Express Tribune newspaper. (With inputs from agencies)

Pakistan's PIA bars pilots, cabin crew from boarding flights while observing fasts during Ramadan

Another member of the Pakistan International Airlines (PIA) cabin crew, has reportedly gone missing while on duty, Pakistan-based DAWN newspaper reported.&nbsp;

The air hostess was identified as Maryam Raza, who landed in Canada's Toronto on PIA flight PK-782 from Islamabad on Monday. However, the reports said that she failed to report for duty on the return flight, PK-784 to Karachi.&nbsp;

She went missing but after a search, a note saying, "Thank you, PIA", was found in a Toronto hotel room. The authorities also found her uniform when they scanned her room.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/balochistan-heavy-rains-paralyse-pakistans-coastal-city-of-gwadar-694733">Balochistan: Heavy rains batter Pakistan’s coastal city of Gwadar, paralyse life</a>&nbsp;

As per the report, she joined Pakistan's national flag carrier 15 years ago. She was given the duty of flight from Islamabad to Toronto.&nbsp;

Notably, this is not the first case as&nbsp;a similar incident&nbsp;has happened earlier this year. Around a month before, another PIA flight attendant Faiza Mukhtar also disappeared in Canada.&nbsp;

Local reports said that she landed in Canada and was supposed to fly back to Karachi, but she went MIA (missing in action). PIA spokesperson Abdullah Hafeez Khan had said that a day after landing in Canada "did not board the flight and disappeared".&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/rats-on-the-plane-sri-lanka-airlines-plane-grounded-for-three-days-after-rodent-spotted-on-flight-694388">Rats on plane: Sri Lanka Airlines aircraft grounded for three days after rodent spotting on flight</a>&nbsp;

Watch:&nbsp;Pakistan: Can Arif Alvi grant pardon to Imran Khan?&nbsp;

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DAWN quoted officials as saying that the disappearances of the cabin crew members are due to the flexible Canadian law, which offers asylum after entering the country.&nbsp;

However, the trend will pose issues for the crisis-hit carrier because it will tarnish its image globally. The airline has already been struggling to secure funds to maintain its operations. Last year in September, PIA was forced to ground several aircraft.&nbsp;

Again in October, the operations were halted again due to a lack of fuel as the Pakistan State Oil (PSO) stopped fuel supply to PIA, which severely impacted the airlines.&nbsp;

(With inputs from agencies)&nbsp;

Another member of the Pakistan International Airlines (PIA) cabin crew, has reportedly gone missing while on duty, Pakistan-based DAWN newspaper reported. The air hostess was identified as Maryam Raza, who landed in Canada's Toronto on PIA flight PK-782 from Islamabad on Monday.

Another member of the Pakistan International Airlines (PIA) cabin crew, has reportedly gone missing while on duty, Pakistan-based DAWN newspaper reported. The air hostess was identified as Maryam Raza, who landed in Canada's Toronto on PIA flight PK-782 from Islamabad on Monday. However, the reports said that she failed to report for duty on the return flight, PK-784 to Karachi. She went missing but after a search, a note saying, "Thank you, PIA", was found in a Toronto hotel room. The authorities also found her uniform when they scanned her room. Also read: Balochistan: Heavy rains batter Pakistan’s coastal city of Gwadar, paralyse life As per the report, she joined Pakistan's national flag carrier 15 years ago. She was given the duty of flight from Islamabad to Toronto. Notably, this is not the first case as a similar incident has happened earlier this year. Around a month before, another PIA flight attendant Faiza Mukhtar also disappeared in Canada. Local reports said that she landed in Canada and was supposed to fly back to Karachi, but she went MIA (missing in action). PIA spokesperson Abdullah Hafeez Khan had said that a day after landing in Canada "did not board the flight and disappeared". Also read: Rats on plane: Sri Lanka Airlines aircraft grounded for three days after rodent spotting on flight Watch: Pakistan: Can Arif Alvi grant pardon to Imran Khan? × DAWN quoted officials as saying that the disappearances of the cabin crew members are due to the flexible Canadian law, which offers asylum after entering the country. However, the trend will pose issues for the crisis-hit carrier because it will tarnish its image globally. The airline has already been struggling to secure funds to maintain its operations. Last year in September, PIA was forced to ground several aircraft. Again in October, the operations were halted again due to a lack of fuel as the Pakistan State Oil (PSO) stopped fuel supply to PIA, which severely impacted the airlines. (With inputs from agencies)

Air hostess of Pakistan International Airlines goes 'missing' from Canada

"Human error" by two pilots was responsible for a Pakistan International Airlines (PIA) plane crash that killed 101 people in May 2020, the investigation report on the incident revealed.&nbsp;

The flight was scheduled from Allama Iqbal International Airport in Lahore to Jinnah International Airport in Karachi.&nbsp;

But the plane crashed a few kilometres from the runway into Model Colony, which is a densely populated residential area in Karachi.&nbsp;

The crash happened during the second attempt following a failed landing.&nbsp;

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The Aircraft Investigation Board (AIB) has finally released its report on the reasons why the Airbus 320 failed to land.&nbsp;

The board determined that the two pilots' inability to exercise sufficient discretion when landing was the primary cause of the deadly crash.&nbsp;

A total of 101 individuals died, including 99 on board. Two passengers miraculously survived with injuries. In addition, eight people on the ground were hurt in the disaster, one of whom died from injuries.&nbsp;

The reports revealed that the pilots were warned by the air traffic controller at least four times that they shouldn't land as their altitude was not right.&nbsp;

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Watch:&nbsp;Pakistan: Opposition parties call off joint protests in Karachi; to observe "Black Day" on Feb 27

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Also, when the pilots first tried to land the aircraft, its engines hit the ground, which led to the system supplying lubricant to the engines shutting down. The report said that "engine failure" eventually led to the crash.&nbsp;

The PIA and the Civil Aviation Authority of the country were also held responsible for failing to have clear rules in place about whether or not pilots should fast while on duty during Ramadan.&nbsp;

As per the report, the aircraft's power supply shut down after the engine failed, and the last four minutes of the flight were not logged on the data box.&nbsp;

(With inputs from agencies)&nbsp;

"Human error" by two pilots was responsible for a Pakistan International Airlines (PIA) plane crash that killed 101 people in May 2020, the investigation report on the incident revealed.

"Human error" by two pilots was responsible for a Pakistan International Airlines (PIA) plane crash that killed 101 people in May 2020, the investigation report on the incident revealed. The flight was scheduled from Allama Iqbal International Airport in Lahore to Jinnah International Airport in Karachi. But the plane crashed a few kilometres from the runway into Model Colony, which is a densely populated residential area in Karachi. The crash happened during the second attempt following a failed landing. Also read: Pakistan ex-PM Imran Khan asks IMF to hold election audit before new loan: Reports The Aircraft Investigation Board (AIB) has finally released its report on the reasons why the Airbus 320 failed to land. The board determined that the two pilots' inability to exercise sufficient discretion when landing was the primary cause of the deadly crash. A total of 101 individuals died, including 99 on board. Two passengers miraculously survived with injuries. In addition, eight people on the ground were hurt in the disaster, one of whom died from injuries. The reports revealed that the pilots were warned by the air traffic controller at least four times that they shouldn't land as their altitude was not right. Also read: New Pak government likely by March 2; presidential poll before March 9: Report Watch: Pakistan: Opposition parties call off joint protests in Karachi; to observe "Black Day" on Feb 27 × Also, when the pilots first tried to land the aircraft, its engines hit the ground, which led to the system supplying lubricant to the engines shutting down. The report said that "engine failure" eventually led to the crash. The PIA and the Civil Aviation Authority of the country were also held responsible for failing to have clear rules in place about whether or not pilots should fast while on duty during Ramadan. As per the report, the aircraft's power supply shut down after the engine failed, and the last four minutes of the flight were not logged on the data box. (With inputs from agencies)

‘Human error’ responsible for 2020 plane crash that killed 101 people in Pakistan

Ahead of the Feb 8 parliamentary elections in Pakistan, the caretaker administration is making plans for the next government to sell the national airline- Pakistan International Airlines (PIA), reported news agency Reuters on Friday (Feb 2), citing people familiar with the matter.

Ahead of the Feb 8 parliamentary elections in Pakistan, the caretaker administration is making plans for the next government to sell the national airline- Pakistan International Airlines (PIA), reported news agency Reuters on Friday (Feb 2), citing people familiar with the matter. Speaking to Reuters, Privatisation Minister Fawad Hasan Fawad said, "Our job is 98 per cent done. The remaining two per cent is just to bring it on an excel sheet after the cabinet approves it." The plan to sell the PIA was drawn up by Ernst & Young (EY). Privatisation Minister Fawad said the plan will be presented to the cabinet for approval before the tenure of the administration ends following the elections. Also read | Exclusive: An optimistic Bilawal Bhutto promises to end politics of hate post elections in Pakistan The cabinet will also decide whether to sell the stake by tender or through a government-to-government deal, he said. The minister further said that what the caretaker administration did in just four months was what past governments had been trying to do for more than a decade. The privatisation of PIA Pakistan, which has been going through an economic crisis, agreed in June last year to overhaul loss-making state-owned enterprises under a deal with the International Monetary Fund (IMF) for a $3 billion bailout. Just weeks after signing the IMF agreement, Islamabad decided to privatise the PIA. As of June 2023, PIA had liabilities of 785 billion Pakistani rupees ($2.81 billion) and accumulated losses of 713 billion rupees. The airline said losses in 2023 were likely to be 112 billion rupees. Also watch | Toshakhana case: Imran Khan, wife handed over 14-year sentence × Citing two sources, Reuters reported that a 51 per cent stake with full management control would be offered to buyers after parking the airline's debts in a separate entity. Earlier, a PIA spokesperson said that the national carrier was assisting the privatisation process, extending "full cooperation" to the transaction adviser. A draft posted on the Pakistan parliament's website said that besides operational and technical measures for PIA's divestment, the caretaker administration also amended a 2016 law that had blocked selling off its majority shares. Criticism of the 'speedy sale' The speedy sale of the PIA has been criticised. Speaking to Reuters, three airline officials who chose to remain anonymous, said that fast sale could devalue the airline's worth and that it would not be a transparent transaction without due diligence. "We are not against its privatisation, and all we want is that you don't just throw it away," one of the officials said. Apart from losses and debts, PIA's governance and safety standards have been under scrutiny in recent years. In May 2020, the crash of a PIA plane in Karachi killed nearly 100 people and a fake pilot licence scandal erupted later that year. This scandal led to the European Union Aviation Safety Agency (EASA) banning the PIA from flying to its most lucrative routes in Europe and the UK. The ban is still in place and the PIA has been pleading with EASA to lift the ban even provisionally. The national carrier also said that the economic crisis in Pakistan led to seizure of PIA aircraft by creditors in recent months. Reuters also reported that while the PIA is awaiting a decision on the sale, it continues to need financial support to keep it afloat for another five to six months. (With inputs from agencies)

Pakistan on verge of sealing plan to sell national airline PIA ahead of Feb 8 elections

Pakistan International Airlines (PIA) operations were halted yet again on Sunday (Oct 22) due to a lack of fuel as the nation's flag carrier keeps getting hit by setbacks. Pakistan State Oil (PSO) stopped fuel supply to PIA, severely impacting the airlines.&nbsp;

Local media outlets reported that the airline cancelled around 70 flights from major cities like Karachi, Lahore, Islamabad, and more.&nbsp;&nbsp;

The affected passengers were provided with alternative flights, a PIA spokesperson said as quoted in media reports.&nbsp;

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PIA has faced multiple crises, including losses, but the current state appears to be dire in recent years.&nbsp;

In a recent statement, PSO said it had received an advance payment of $789,804 for the supply of fuel on Saturday and Sunday. They also received a list of some PIA aircraft.

However, the PIA spokesperson claimed that only four aircraft were fueled on Sunday, which affected the flight operations. &nbsp;

For operational support, the airline requested $76 million, but it was declined by the government. However, there's no information on whether or not caretaker Prime Minister Anwaar-ul-Haq Kakar will opt for a restructuring plan to stabilise the finances of the airline.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-former-pm-imran-khan-charged-in-cipher-case-650282">Former Pak PM Imran Khan charged in cipher case</a>

PIA spokesperson Abdulllah Khan told Arab News: "On Sunday, only 11 flights could operate out of 81 scheduled flights due to fuel challenges." He said that the airline had been making advance payments to PSO for fuel supply. &nbsp;

"The Pakistan International Airlines made a payment of Rs 220 million on Friday which could last the weekend, but it did not. And on Sunday, we were refused fuel which resulted in massive cancellations," he said.&nbsp;

As per Khan, there were "slim chances of a full restoration of flight operations" considering the way fuel was being supplied and amid PSO's refusal to allow any credit line or relaxation to "a fellow government organisation".&nbsp;

"However, our focus will now shift toward preserving our international operations, for which we can secure fuel from other sources, unlike in Pakistan, where we are bound to obtain fuel from PSO," he said.&nbsp;

(With inputs from agencies) 
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Pakistan International Airlines (PIA) operations were halted yet again on Sunday (Oct 22) due to a lack of fuel as the nation's flag carrier keeps getting hit by setbacks.

Pakistan International Airlines (PIA) operations were halted yet again on Sunday (Oct 22) due to a lack of fuel as the nation's flag carrier keeps getting hit by setbacks. Pakistan State Oil (PSO) stopped fuel supply to PIA, severely impacting the airlines. Local media outlets reported that the airline cancelled around 70 flights from major cities like Karachi, Lahore, Islamabad, and more. The affected passengers were provided with alternative flights, a PIA spokesperson said as quoted in media reports. Also read: Nawaz Sharif returns to Pakistan. His past, present, and future PIA has faced multiple crises, including losses, but the current state appears to be dire in recent years. In a recent statement, PSO said it had received an advance payment of $789,804 for the supply of fuel on Saturday and Sunday. They also received a list of some PIA aircraft. However, the PIA spokesperson claimed that only four aircraft were fueled on Sunday, which affected the flight operations. For operational support, the airline requested $76 million, but it was declined by the government. However, there's no information on whether or not caretaker Prime Minister Anwaar-ul-Haq Kakar will opt for a restructuring plan to stabilise the finances of the airline. Also read: Former Pak PM Imran Khan charged in cipher case PIA spokesperson Abdulllah Khan told Arab News: "On Sunday, only 11 flights could operate out of 81 scheduled flights due to fuel challenges." He said that the airline had been making advance payments to PSO for fuel supply. "The Pakistan International Airlines made a payment of Rs 220 million on Friday which could last the weekend, but it did not. And on Sunday, we were refused fuel which resulted in massive cancellations," he said. As per Khan, there were "slim chances of a full restoration of flight operations" considering the way fuel was being supplied and amid PSO's refusal to allow any credit line or relaxation to "a fellow government organisation". "However, our focus will now shift toward preserving our international operations, for which we can secure fuel from other sources, unlike in Pakistan, where we are bound to obtain fuel from PSO," he said. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan International Airlines cancels flights over non-payment of dues to fuel supplier

Pakistan International Airlines (PIA), the embattled national airline of Pakistan, was forced to cancel dozens of domestic and international flights because it could not pay its fuel bills, said officials. The state-run airline is long-accused of being poorly run. It has seen its funds drying up as the government itself battles balance of payments crisis caused by debt repayments.

Athar Awan, a deputy spokesman for PIA, said 48 international and domestic flights were cancelled on Tuesday and Wednesday "due to non-availability of fuel". He was quoted by AFP

"The reason for the disruption in fuel supply is non-payment of dues because PIA is facing a financial crisis and cannot pay the dues to Pakistan State Oil on time," a PIA official speaking on condition of anonymity told AFP.&nbsp;

Pakistan economy is in dire straits following decades of mismanagement and instability. The country was forced into another bailout from the International Monetary Fund (IMF) to avoid debt default.

Pakistan's interim government has said that it plans to sell off the airline.

"The process of privatisation for the national airline should be made more transparent and expedited to prevent further financial losses to the national exchequer," caretaker Prime Minister Anwaar-ul-Haq Kakar said in a statement last week.

AFP quoted an unnamed senior official of Pakistan State Oil (PSO) who said that the state-owned oil company was "providing fuel for only flights that PIA has prioritised".

The official said that PIA has agreed to pay PSO 100 million Pakistani rupees (around $360,000) every day to cover dues.

"On Wednesday PSO received a payment of 150 million rupees in return 26 flights were refuelled", the official added as per AFP.

PIA has said in a statement that it expected normal service to resume on Thursday and that it paid for fuel "from its own resources".

Bloomberg has previously reported that PIA had liabilities of 743 billion rupees (around $2.5 billion), exceeding its total assets by five times.

PIA came into being in 1955 when the government nationalised a loss-making commercial airline, and enjoyed rapid growth until the 1990s.

The airline's reputation was also battered by a series of strikes, hijackings and accidents -- including the crash of an Airbus in Karachi in May 2020 that killed 97 passengers and crew.

(With inputs from agencies)

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Pakistan International Airlines (PIA), the embattled national airline of Pakistan, was forced to cancel dozens of domestic and international flights because it could not pay its fuel bills, said officials.

Pakistan International Airlines (PIA), the embattled national airline of Pakistan, was forced to cancel dozens of domestic and international flights because it could not pay its fuel bills, said officials. The state-run airline is long-accused of being poorly run. It has seen its funds drying up as the government itself battles balance of payments crisis caused by debt repayments. Athar Awan, a deputy spokesman for PIA, said 48 international and domestic flights were cancelled on Tuesday and Wednesday "due to non-availability of fuel". He was quoted by AFP "The reason for the disruption in fuel supply is non-payment of dues because PIA is facing a financial crisis and cannot pay the dues to Pakistan State Oil on time," a PIA official speaking on condition of anonymity told AFP. Pakistan economy is in dire straits following decades of mismanagement and instability. The country was forced into another bailout from the International Monetary Fund (IMF) to avoid debt default. Pakistan's interim government has said that it plans to sell off the airline. "The process of privatisation for the national airline should be made more transparent and expedited to prevent further financial losses to the national exchequer," caretaker Prime Minister Anwaar-ul-Haq Kakar said in a statement last week. AFP quoted an unnamed senior official of Pakistan State Oil (PSO) who said that the state-owned oil company was "providing fuel for only flights that PIA has prioritised". The official said that PIA has agreed to pay PSO 100 million Pakistani rupees (around $360,000) every day to cover dues. "On Wednesday PSO received a payment of 150 million rupees in return 26 flights were refuelled", the official added as per AFP. PIA has said in a statement that it expected normal service to resume on Thursday and that it paid for fuel "from its own resources". Bloomberg has previously reported that PIA had liabilities of 743 billion rupees (around $2.5 billion), exceeding its total assets by five times. PIA came into being in 1955 when the government nationalised a loss-making commercial airline, and enjoyed rapid growth until the 1990s. The airline's reputation was also battered by a series of strikes, hijackings and accidents -- including the crash of an Airbus in Karachi in May 2020 that killed 97 passengers and crew. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

PIA cancels dozens of flights as funds to pay for fuel dry up

As it struggles to secure funds to maintain its operations, Pakistan International Airlines (PIA) has reportedly resorted to grounding several aircraft.&nbsp;

Dawn reports that&nbsp;over the next few months, PIA's core functions and non-core assets are expected to be put up for sale.

<h2>Grounding aircraft</h2>

Just last week, Pakistan's Ministry of Aviation issued a stern warning and told the federal government that the airline&nbsp;is grappling with a severe cash flow crisis.&nbsp;

This, the ministry said, has led to arrears with creditors, aircraft lessors, fuel suppliers, insurers, international and domestic airport operators, and even the International Air Transport Association (IATA).

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/landmine-explosion-in-pakistans-peshawar-injures-at-least-five-634777">'Landmine' explosion in Pakistan's Peshawar injures 11, one FC personnel killed</a>

Due to this, Pakistan's national flag carrier has now been compelled to ground five of its 13 leased aircraft, said the ministry, adding that four more aircraft face a similar fate.

<h2>Cash injection to save dying airline</h2>

The Ministry of Aviation, as per Dawn, also reported that Boeing and Airbus were on the verge of discontinuing the supply of spare parts by mid-September.

Amid mounting concerns, the ministry has requested an immediate "cash injection" of 23 billion Pakistani Rupee (around 77.3 million USD). It has also asked for the suspension of duties, taxes and service charges to domestic agencies.

However, Dawn reports that these requests were not accompanied by a concrete and viable business plan.

The restructuring of PIA is a complex process expected to take around eight months, it added.

<h2>Pakistan International Airlines' losses</h2>

PIA, which was once known for its slogan "Great People to Fly With," has faced mounting losses since the late 1990s.&nbsp;

The airline's financial difficulties have been attributed to competition from emerging regional airlines, mismanagement, and insufficient funding for fleet expansion.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/pakistani-police-recover-five-children-from-sara-sharifs-grandfathers-house-635057">Pakistani police recover five children from Sara Sharif’s grandfather’s house</a>

As of December 31, 2022, PIA's debt and liabilities stood at Rs 743 billion ($2.50 billion), five times more than the total value of its assets. Its losses for the last financial year (2022-23) stood at Rs 86.5 billion ($291 million) said the aviation ministry.

"If the situation continues as such, PIA's debt and liabilities will rise to Rs 1,977 bn ($6.65 billion) and its annual losses will rise to Rs 259bn ($871 million) per annum by 2030," it added. The ministry also warned that Rs 383 billion ($1.29 billion) of the current debt liability of PIA stood underwritten by the government of Pakistan, which it said, as the 92 per cent owner, had the responsibility for the remaining payables.

(With inputs from agencies)

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As it struggles to secure funds to maintain its operations, Pakistan International Airlines (PIA) has reportedly resorted to grounding several aircraft. Dawn reports that over the next few months, PIA's core functions and non-core assets are expected to be put up for sale.

As it struggles to secure funds to maintain its operations, Pakistan International Airlines (PIA) has reportedly resorted to grounding several aircraft. Dawn reports that over the next few months, PIA's core functions and non-core assets are expected to be put up for sale. Grounding aircraft Just last week, Pakistan's Ministry of Aviation issued a stern warning and told the federal government that the airline is grappling with a severe cash flow crisis. This, the ministry said, has led to arrears with creditors, aircraft lessors, fuel suppliers, insurers, international and domestic airport operators, and even the International Air Transport Association (IATA). Also read | 'Landmine' explosion in Pakistan's Peshawar injures 11, one FC personnel killed Due to this, Pakistan's national flag carrier has now been compelled to ground five of its 13 leased aircraft, said the ministry, adding that four more aircraft face a similar fate. Cash injection to save dying airline The Ministry of Aviation, as per Dawn, also reported that Boeing and Airbus were on the verge of discontinuing the supply of spare parts by mid-September. Amid mounting concerns, the ministry has requested an immediate "cash injection" of 23 billion Pakistani Rupee (around 77.3 million USD). It has also asked for the suspension of duties, taxes and service charges to domestic agencies. However, Dawn reports that these requests were not accompanied by a concrete and viable business plan. The restructuring of PIA is a complex process expected to take around eight months, it added. Pakistan International Airlines' losses PIA, which was once known for its slogan "Great People to Fly With," has faced mounting losses since the late 1990s. The airline's financial difficulties have been attributed to competition from emerging regional airlines, mismanagement, and insufficient funding for fleet expansion. Also read | Pakistani police recover five children from Sara Sharif’s grandfather’s house As of December 31, 2022, PIA's debt and liabilities stood at Rs 743 billion ($2.50 billion), five times more than the total value of its assets. Its losses for the last financial year (2022-23) stood at Rs 86.5 billion ($291 million) said the aviation ministry. "If the situation continues as such, PIA's debt and liabilities will rise to Rs 1,977 bn ($6.65 billion) and its annual losses will rise to Rs 259bn ($871 million) per annum by 2030," it added. The ministry also warned that Rs 383 billion ($1.29 billion) of the current debt liability of PIA stood underwritten by the government of Pakistan, which it said, as the 92 per cent owner, had the responsibility for the remaining payables. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan's national carrier forced to ground aircraft amid severe financial crisis

The Pakistan International Airline (PIA) is seeking approximately $75 million as a bailout package from the interim government in order to continue its services amidst a massive debt crisis, according to The Express Tribune report.

As per the report, the demand, which was made from the Pakistan interim set-up, has not been accepted yet.

Despite releasing funds, the interim set-up has urged for the management of Pakistan's national carrier to design a feasible restructuring plan.

The Express Tribune, citing people familiar with the matter, reported that the PIA management met with caretaker Finance Minister Dr Shamshad Akhtar and sought the financing. However, the airline could not immediately win the bailout package.

According to the news daily reports, the PIA is the country's most heightened public sector loss-making commodity and subsequent governments have been giving out money from the budget to keep it buoyant.

Also read: <a href="https://www.wionews.com/south-asia/relief-for-imran-khan-as-pakistan-court-suspends-jail-sentence-grants-bail-630173">Relief for Imran Khan as Pakistan court suspends jail sentence in Toshakhana case</a>

Regardless, there isn't any plan to install professional management and the affairs of the PIA are entrusted to Air Force officers, who do not have experience in handling operations and running a commercial airline.

The management of the Pakistan International Airline (PIA) informed the caretaker finance minister in the meeting that there was a financing gap of Rs 23 billion.

However, the finance ministry asked the PIA management to arrange Pak currency Rs 13 billion in funds from the banks against the available space of the annual sovereign guarantees limit.

The government, in the last fiscal year, increased the limit of the sovereign guarantees to over Rs 263 billion for taking more loans to maintain a steady position.

If the PIA fails to service its debt, the banks have the option of cashing these sovereign guarantees.

(With inputs from agencies) 
&nbsp;

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The Pakistan International Airline (PIA) is seeking approximately $75 million as a bailout package from the interim government in order to continue its services amidst a massive debt crisis, according to The Express Tribune report.

The Pakistan International Airline (PIA) is seeking approximately $75 million as a bailout package from the interim government in order to continue its services amidst a massive debt crisis, according to The Express Tribune report. As per the report, the demand, which was made from the Pakistan interim set-up, has not been accepted yet. Despite releasing funds, the interim set-up has urged for the management of Pakistan's national carrier to design a feasible restructuring plan. The Express Tribune, citing people familiar with the matter, reported that the PIA management met with caretaker Finance Minister Dr Shamshad Akhtar and sought the financing. However, the airline could not immediately win the bailout package. According to the news daily reports, the PIA is the country's most heightened public sector loss-making commodity and subsequent governments have been giving out money from the budget to keep it buoyant. Also read: Relief for Imran Khan as Pakistan court suspends jail sentence in Toshakhana case Regardless, there isn't any plan to install professional management and the affairs of the PIA are entrusted to Air Force officers, who do not have experience in handling operations and running a commercial airline. The management of the Pakistan International Airline (PIA) informed the caretaker finance minister in the meeting that there was a financing gap of Rs 23 billion. However, the finance ministry asked the PIA management to arrange Pak currency Rs 13 billion in funds from the banks against the available space of the annual sovereign guarantees limit. The government, in the last fiscal year, increased the limit of the sovereign guarantees to over Rs 263 billion for taking more loans to maintain a steady position. If the PIA fails to service its debt, the banks have the option of cashing these sovereign guarantees. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan's national carrier seeks $75 million bailout package from government

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Pakistan's national carrier seeks $75 million bailout package from government