No govt financing, sovereign-guaranteed loans for new PIA aircraft: PM's finance adviser

The Finance Adviser to the Prime Minister, Khurram Schehzad, has clarified that the government is not purchasing any aircraft for the privatised Pakistan International Airlines (PIA) nor has it announced any sovereign guarantee of taxpayer-funded loans for such a purchase. This clarification comes after claims on social media suggested that a minister was arranging and negotiating sovereign-linked financing for new PIA aircraft.

The Finance Minister, Muhammad Aurangzeb, met with John Jovanovich, Chair of the US Export-Import (Exim) Bank, during the 81st session of the United Nations General Assembly in New York. They discussed the Reko Diq mining project and funding opportunities for procuring an aircraft for PIA, including an interest in Boeing’s 787 Dreamliners.

However, Schehzad pointed out that the US Exim's mandate is to support its country's exports and jobs, and a sovereign guarantee is not an automatic requirement for asset-backed aircraft financing. He emphasized that the government's role is to open doors, facilitate access to international financing, technology, and suppliers, and promote investment and commercial opportunities, aligning with Pakistan's economic direction of reducing the state's role in commercial activity and fostering private-sector-led growth.

Brief written by urgent.news from Dawn's own syndicated text. Machine-written — may contain errors; check the original before relying on it.