IMF approves plan to privatize PIA

Islamabad: The International Monetary Fund (IMF) has approved the plan to privatize Pakistan International airline (PIA).

According to the details, the negotiations between the officials of the Ministry of Privatization and the Ministry of Finance have been successful in which the loan rescheduling plan for the privatization of PIA has been approved from the IMF.

Officials stated that the final approval for PIA's debt rescheduling plan will be taken from the federal cabinet while according to the Privatization Commission and Finance Ministry's plan, the IMF has approved the PIA's privatization plan.

The IMF has agreed to pay the interest on the PIA loan to the government of Pakistan for one year. The government will pay the 280 billion loan to the banks at 12 percent interest for one year.

The IMF’s officials said that banks should not be burdened with interest payments on PIA loans for more than one year.

PIA will be privatized and a loan repayment plan will be made in one year. After privatization, a loan repayment plan is likely to be made from the dividend of Velet Hotel and PIA.