PIA partially resumes flight operation

Karachi: Pakistan International Airlines (PIA) has partially resumed its flight operation after disbursing fuel payments to the Pakistan State Oil (PSO) on Friday.

The national flag carrier operated a limited number of flights after disbursing Rs100 million to the PSO in terms of fuel payments.

The PIA administration made the fuel payments for eight international flights.

Earlier, the airline paid Rs70 million to PSO.

Relevantly, sources inside the finance ministry said that cash-strapped Pakistan International Airlines (PIA) received approval from the caretaker government today to get a new loan of Rs20 billion from commercial banks.

Pakistan International Airlines is on the verge of a shutdown as it cancelled over 500 flights in the past 11 days due to the unavailability of fuel.

According to sources, the finance ministry has "directed" commercial banks to provide Pakistan International Airlines with new loans, and it has also "rescheduled" the government's existing debt for a period of six months.

The National Bank of Pakistan, Bank of Punjab, and six other commercial banks, they add, would provide the PIA with new loans based on the guarantee.

The national flag carrier has already taken a loan worth Rs260 billion from commercial banks on the government’s guarantee.

The Pakistan International Airlines loan will be rescheduled for six months until the privatization of the national entity, the sources said.

The national flag carrier is facing arguably its worst crisis in history as Pakistan State Oil (PSO) has cut the fuel supply over unpaid dues.

The move forced the airline to cancel 537 flights since Oct 13.