Business

PIA cancels scores of flights as paucity of funds ‘weighs’ on operations

Published

1 year ago

Farwa

KARACHI: The operations of Pakistan International Airlines (PIA) were severely affected due shortage of funds with a number of domestic and international flights being cancelled, sources told Geo News on Tuesday.

The sources further said that a number of domestic flights to and from Karachi were cancelled as the national flag carrier failed to pay Pakistan State Oil (PSO) for fuel supply.

A number of flights have been called off including two Karachi-Muscat, and two-way domestic ones from Karachi to Faisalabad, Islamabad and Lahore, according to sources.

Similarly, fights from Karachi to Turbat, Bahawalpur, and Sukkur have also been scratched, airline sources said.

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

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

A PIA spokesperson in a statement said management is in touch with the Ministry of Finance and the salaries of the employees will be paid as soon as the funds are received.

A day earlier, Geo News citing sources reported that the PIA risks grounding 15 planes amid a significant financial crisis due to growing dues owed by the national carrier.

According to well-placed sources privy to the development, PIA has to clear dues worth up to Rs20 billion. Any delay in timely payment of the dues pertaining to fuel, federal excise duty (FED) and lease payments, might lead to 15 planes being grounded.

More than 30 national flights will be suspended if the planes are grounded, the sources had added.

Meanwhile — commenting on the dire situation — the Ministry of Aviation said that overhauling the PIA is a “complicated” process and will take a year. However, during this time it is imperative to keep the airline operational.

Last week, the national carrier announced the “easing” of its financial challenges following the release of critical funds by the banks as a result of support from the government of Pakistan.

“The funds shall be used to clear long-standing dues of aircraft and engine leases, spare support and handling payments at foreign stations. Restructuring is also on track,” the national carrier said.

PIA’s financial woes

On September, the PIA had said it grounded five out of its 13 leased aircraft with further prospect of grounding four additional plane 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

1 day 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.