PIA privatisation faces hurdles as ministries lock horns on debt transfer

[Karachi Aviator]

Transferring Rs 1.7 trillion losses of PIACL will create a huge financial burden for government, argues Finance Ministry

The privatisation plan of Pakistan International Airlines Corporation Limited (PIACL) faces hurdles as the Finance Ministry and the Privatisation Ministry lock horns over the transfer of the national carrier’s liabilities to the government

https://profit.pakistantoday.com.pk/202 ... -transfer/

So all this time, the ministry of finance wasn't onboard PIA's privatisation plan and now isn't willing to takeover a debt of 1.7 trillion, great. They still aren't thinking about selling the hotels

[Amaad Lone]

Transferring Rs 1.7 trillion losses of PIACL will create a huge financial burden for government, argues Finance Ministry

First of all one does not transfer losses, but debt and liability.

PIA losses include EXCHANGE RATE LOSSES as rupee went form 60 in 2004 to 280 in 2024 these losses are booked every three months, but it does not create debt.

PIA loans to local banks and foreign banks

PIA liabilities including PSO FBR and CAA these are the three biggest.

Mentioned in the article the total debt and liabilities that the government will take over are 623 billion rupees or around 2.25 billion dollars according to today exchange rate. Most of this debt can be recovered by selling the two hotels, and other properties of PIA.

Where is the 1.7 trillion amount coming from??