Key Takeaways
- Finance Minister’s Adviser denies claims of public loan for PIA.
- US EXIM can provide financing for foreign buyers of US-made aircraft.
- Government facilitating access to international financing for PIA.
Finance Minister’s Adviser Khurram Schehzad has dismissed concerns that the government is planning to arrange a public loan for Pakistan International Airlines (PIA).
In a statement on X, Schehzad clarified that no public loan or taxpayer-funded financing has been announced, and the government is only assisting PIA in accessing international financing options following its privatization.
He explained that the US Export-Import Bank (US EXIM) can provide financing to foreign buyers of US-made aircraft, including airlines, through commercial structures, which can be secured against the aircraft itself.
Schehzad stated that the government has not announced any sovereign guarantee, public loan, or state-backed financing for PIA, emphasizing that the airline will secure its own financing.
Earlier, Finance Minister Muhammad Aurangzeb met with US EXIM Chairman John Jovanovich, discussing potential financing for PIA aircraft, refinery upgrades, and the Reko Diq mining project.
Schehzad highlighted that the government’s role is to facilitate access to international financing and suppliers, while private businesses make investments and take commercial decisions.
He noted that privatizing PIA does not prevent the government from helping the airline access international financing, adding that the government is committed to supporting the airline’s growth.
The government is also working to ensure that PIA can operate efficiently and competitively in the market, without burdening taxpayers with additional financial obligations.
