PIA raises $130 million to improve services

PIA raises $130 million to improve services

PIA News

KARACHI: Pakistan International Airlines (PIA) said Monday it
has raised $130 million in fresh financing from a banking consortium,
as the airline staggers under the weight of earlier loans totalling
more than $3 billion (PIA News).

PIA said in a statement the financing facility was arranged by
Pakistan’s United Bank Limited (UBL) and Credit Suisse Singapore as
lead bankers, in addition to the state-run National Bank of Pakistan.

“The (financing) facility… will be utilised by PIA for its general working
capital requirements and in improvement in passenger services,” the statement also said.

However, a PIA official requesting anonymity also said the fresh loan might
be utilised to help settle earlier loans.

Moreover, PIA’s cumulative loans stand at around 329 billion rupees, or $3.16 billion.
Furthermore, it suffers heavy financial losses annually, posting a 32 billion rupee loss in 2015.

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