Will Govt Make Citizens Pay for New PIA Planes?

Finance Minister Khurram Schehzad has denied rumors that the government is providing a loan for Pakistan International Airlines (PIA). In a recent X post, Schehzad clarified that the government has not announced any public funding or taxpayer-financed support for the airline. Instead, the government is merely assisting PIA in exploring international financing options following its privatization.

Schehzad explained that the US Export-Import Bank (US EXIM) can offer financing to foreign purchasers of US-made aircraft, including airlines, through commercial arrangements. This financing can be secured against the aircraft itself, meaning that a sovereign government guarantee is not always necessary. Contrary to speculation, the government has not pledged any sovereign guarantee, public loan, or state-backed financing for PIA.

Finance Minister Muhammad Aurangzeb's recent meeting with US EXIM Chairman John Jovanovich focused on potential financing avenues for PIA, along with plans for refinery upgrades and the Reko Diq mining project. Schehzad emphasized that while the government's role is to facilitate access to international financing and suppliers, private enterprises are responsible for making investments and conducting commercial decisions.

The article "Will Govt Make Citizens Pay for New PIA Planes?" was originally published on ProPakistani.