Caretaker Finance Minister Dr. Shamshad Akhtar Chairs High-Stakes Meeting on PIA’s Financial Woes

In a significant development, the Economic Coordination Committee (ECC) of Pakistan, presided over by Caretaker Federal Minister for Finance Dr. Shamshad Akhtar, met to address the financial challenges faced by Pakistan International Airlines Corporation Limited (PIACL). The Aviation Division proposed a solution to provide financial support to PIA through the Civil Aviation Authority (CAA) to cover the airline’s urgent financial needs.

After thorough discussion and consideration, the ECC approved the proposal for bridge financing, allocating a substantial sum of Rs. 8 billion from CAA’s resources to assist PIA in meeting its overdue payments. The committee also granted the Aviation Division the authority to initiate a bilateral arrangement between CAA and PIA.

The meeting was attended by prominent officials, including Caretaker Minister for Privatization Fawad Hassan Fawad, Caretaker Minister for Planning and Development Sami Saeed, and Adviser to the Prime Minister on Aviation Air Marshal Farhat Hussain Khan, along with Federal Secretaries and senior officers from relevant ministries.

The decision comes after Pakistan State Oil (PSO) raised concerns about PIA’s mounting dues, amounting to a substantial Rs. 26.8 billion. PSO had previously warned of limiting fuel supplies to PIA due to the airline’s continuous failure to meet its financial commitments. The consequences of these financial woes are evident as PIA recently canceled more than 300 flights within the last 10 days, mainly due to fuel unavailability.

This ECC decision is a vital step to help PIA tackle its financial difficulties and ensure the smooth operation of the national flag carrier, addressing a pressing issue for Pakistan’s aviation sector.

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