Super Heavy unexpectedly splashed down in the Gulf of Mexico instead of returning to land
world3 days ago
Pakistan's national flag carrier admitted on Friday it was struggling to pay bills and wages after local media reports said the fleet may be grounded within days.
Abdullah Hafeez, spokesman for government-owned Pakistan International Airlines (PIA), said the company was seeking urgent financial help from the treasury, but had secured funds "for the time being".
"But we do struggle due to balance sheet challenges," he said.
"That is why PIA is seeking balance sheet restructuring support from the owners."
Decades of mismanagement and instability have hobbled Pakistan's economy, and this year Islamabad was forced into a deal with the International Monetary Fund (IMF) to avert default.
State-run enterprises in particular — long accused of being bloated and poorly run — have found funds drying up as the government struggles with a balance of payments crisis caused by crippling debt repayments.
Hafeez said three flights were grounded on Thursday and that salaries had been paid late.
Twenty-five aircraft from a fleet of 31 were still flying, with the others grounded for scheduled or unscheduled maintenance, he said.
Local television channel Geo news this week reported that the airline was on the verge of collapse and flight operations could be suspended in days if emergency funds were not provided.
Bloomberg reported that PIA had liabilities of 743 billion rupees (around $2.5 billion), exceeding its total assets by five times.
PIA came into being in 1955 when the government nationalised a loss-making commercial airline, and enjoyed rapid growth until the 1990s.
The liberalisation of the market and launch of several private and publicly owned airlines put enormous pressure on PIA, resulting in years of lossmaking.
The airline's reputation was also battered by a series of strikes, hijackings and accidents — including the crash of an Airbus in Karachi in May 2020 that killed 97 passengers and crew.
The government has plans to sell part or all the airline, but has so far not acted on a least two proposals put forward for privatisation by special committees.
ALSO READ:
Super Heavy unexpectedly splashed down in the Gulf of Mexico instead of returning to land
world3 days ago
The 19-year-old dreamt of competing abroad, and said she wanted to be like Ronaldo and Messi
world3 days ago
Hochstein's mission marks a last-ditch attempt by the outgoing US administration to clinch a ceasefire as diplomacy to end the Gaza war appears totally adrift
world4 days ago
This will be his first visit since the beginning of the conflict between Ukraine and Russia around three years ago
world4 days ago
The changes state that any conventional attack on Russia, aided by a nuclear power, could be considered to be a joint attack
world4 days ago
The country launched a probe in March 2021 into WhatsApp's privacy policy, which allowed data sharing with Facebook and its units, sparking global backlash
world5 days ago
This time around, Trump wants the Senate to give up that gatekeeping role and allow him to make 'recess appointments'
world5 days ago
Police allege the offences took place between 2001 and 2019 against 8 victims; the youngest was 17 at the time of the offence
world5 days ago