PIA likely to suspend flight operations amid financial crisis

KARACHI: The flight operations of Pakistan International Airlines (PIA) are likely to be suspended amid a severe financial crisis, ARY News reported citing sources.

According to sources, the national airline is in need of Rs 7 billion to continue its flight operation as the banks have denied issuing funds despite guarantees from the Pakistan government.

Earlier, Caretaker Prime Minister Anwaar-ul-Haq Kakar directed authorities concerned to expedite the privatization process of Pakistan International Airlines (PIA) and other loss-making state-owned enterprises.

Sources told ARY News that the PIA’s financial affairs will be handed over to Privatisation Commission as the latter would take measures to reduce its losses.

PIA: PM Kakar directs to speed up privatisation

Sources further claimed that the commission will link the national carrier’s financial affairs with latest system. By improving PIA’s financial affairs, the commission will improve its balance sheet – which will help in carrier’s privatisation.

Meanwhile, sources added that the administrative control of the institution will continue to be with the PIA’s management. Moreover, the administrative affairs will remain under the Ministry of Aviation.

Sources also claimed that that the matters of PIA’s regulation will remain with civil aviation. The Privatisation Commission wants to make institution’s accounts transparent by December 31.

from Latest Pakistan News and Breaking News from All over Pakistan https://ift.tt/lP24jqO