Prime Minister Raja Pervez Ashraf orders to release $4.5 million for PIA

In order to uplift Pakistan International Airline (PIA), Prime Minister Raja Pervez Ashraf has instructed the Finance Ministry to release 4.5 million dollars to the corporation after fulfilling necessary formalities.

While chairing a high level meeting to review the performance of PIAC, the premier assured its management that he would favorably consider conversion of Rs 8 billion loan by the federal government into equity.

He directed the Ministry of Finance to formulate a strategy for rescheduling of loans of Rs 147 billion owed to different banks by the corporation to ease its financial condition.

Lauding the business plan worked out by the PIA, the premier also observed that he saw a ray of hope for turnaround and improvement in services of the corporation.

PM Raja Pervez Ashraf further said that the government would extend all possible assistance to the PIA management to regain its status worthy of a national corporation.

Earlier, Air Marshal (Retd ) Rao Qamar Suleman, the chairman PIA, briefed the premier on the salient features of the business plan worked out by the new management.

Commenting on the current financial and operational problems faced by PIAC, the chairman said that fuel cost and cost of financing were eating away a substantial part of the annual revenue of Rs 117 billion.

Rao Qamar Suleman proposed short term, medium term and long term plans to resolve the problems being faced by PIAC. He also stated the business had been prepared with a view to downsize expenditure on one hand while striving to optimize revenues on the other.

The chairman PIA also requested PM Ashraf to convert the federal loan of Rs8 billion loans into equity and allow rollover of Rs 147 billion loans due to various banks. Requesting for an immediate assistance of 4.5 million dollars for acquiring aircraft on dry lease, the chairman sought premier’s assistance to resolve the crisis.

Minister for Defence Syed Naveed Qamar, Minister for Finance Dr. Abdul Hafeez Sheikh, Deputy Chairman Planning Commission Nadeem-ul-Haq, Secretaries of Cabinet, Defence, Finance ministries and senior government officials also participated in the meeting.

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Posted by Faisal Farooq on Aug 2 2012. Filed under National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.