Business

PIA on verge of collapse, says airline director

Published

1 year ago

Farwa

Number of operational planes reduced to 16 from 23: official.
Boeing, Airbus suspend spare parts supplies to airline.
PIA planes stopped at Gulf airports over fuel non-payment.

KARACHI: Pakistan International Airlines (PIA) is on the verge of collapse as a top official of the national flag carrier has warned that flight operations are feared to be suspended by September 15 if emergency funds are not provided, Geo News has learnt.

Speaking to Geo News on Wednesday, a senior director of the national flag carrier said the number of operational planes had been reduced to 16 from 23 which led to the cancellation of several flights.

The official said aircraft manufacturers — Boeing and Airbus — have also suspended spare parts supplies to the PIA over non-payment and the national airline was incurring losses worth millions of rupees daily due to limited flight operations.

The official also revealed that a PIA plane was stopped at Dammam airport while another four at Dubai airport over failure to pay for fuel.

The planes were allowed to leave on written assurance of the PIA, the official said, adding that the International Air Transport Association (IATA) restored PIA services after an emergency payment of $3.5 million was made.

The official warned that flight operations may be suspended by September 15 if Rs23 billion were not provided in emergency funds.

Meanwhile, a PIA spokesperson said in a statement that all-out efforts were being made to save the flight operations from suspension.

A day earlier, sources told Geo News the PIA flight operations were severely affected due to a shortage of funds with a number of domestic and international flights being cancelled.

The insiders said the national flag carrier had requested the government for immediate provision of funds.

Moreover, the sources said the PIA employees had also not been paid their salaries as well.

PIA’s financial woes

On September 7, the PIA had said it grounded five out of its 13 leased aircraft with further prospect of grounding four additional planes due to the prevailing financial crunch.

The PIA had asked for an emergency bailout of Rs22.9 billion which was rejected by the Economic Coordination Committee (ECC).

The ECC also rejected the request for deferment of the payments of Rs1.3 billion per month, which PIA pays to FBR against FED and Rs0.7 billion per month which PIA pays to the Civil Aviation Authority (CAA) against embarking charges.

The airline had also warned that Boeing and Airbus might suspend the supply of spare parts by mid-September.

Last month, the FBR froze 13 PIA bank accounts due to non-payment of Rs8 billion in FED.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.