ISLAMABAD: Finance Minister’s Adviser Khurram Schehzad has rejected reports about a government loan for Pakistan International Airlines (PIA).
Schehzad clarified the matter in a post on X on Sunday. He said no public loan has been announced for the national airline.
He also denied claims about taxpayer-funded financing for the airline. According to him, the government is only helping PIA explore international financing options.
The clarification comes after PIA’s privatization. Schehzad said privatization does not stop the government from supporting access to international financing.
He explained that the US Export-Import Bank can finance foreign buyers of US-made aircraft. Airlines can also access such financing through commercial arrangements.
The financing can be secured against the aircraft being purchased. Therefore, a sovereign government guarantee is not automatically required.
Schehzad stressed that the government has not announced any sovereign guarantee. He also said there is no public loan for PIA.
Similarly, no state-backed financing arrangement has been announced for the airline. The government’s role remains focused on facilitating access to international financing.
The issue is linked to possible financing for PIA Planes and other aviation requirements. Such financing could involve international lenders and aircraft suppliers.
Earlier, Finance Minister Muhammad Aurangzeb met US EXIM Chairman John Jovanovich. The meeting discussed several potential financing opportunities.
The discussions included financing options for PIA aircraft. Refinery upgrades and the Reko Diq mining project were also discussed.
Schehzad said the government can help connect businesses with international financing sources. However, private companies remain responsible for their own investment decisions.
He added that businesses will continue making commercial decisions based on their requirements. The government will facilitate access to suppliers and international financial institutions.
The adviser also explained that PIA’s privatization does not prevent government assistance. Authorities can still help the airline explore suitable international financing channels.
The financing model for PIA Planes could therefore involve commercial arrangements. These arrangements would differ from direct government borrowing or taxpayer-funded support.
Schehzad’s statement aimed to clarify the government’s position on PIA financing. He maintained that no public borrowing arrangement has been announced.
The government is instead working to improve access to international financial markets. Officials say private-sector investment will remain central to PIA’s future operations.
The clarification also distinguishes aircraft financing from a government loan. Aircraft-backed financing can provide another option for airlines purchasing new planes.
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For PIA, such international financing could support future aircraft-related requirements. However, the final investment and commercial decisions would remain with the private business.
