Finance Minister’s Adviser Khurram Schehzad has rejected reports about a government loan for Pakistan International Airlines (PIA).
Schehzad clarified the government’s position in a post on X on Sunday. He said no public loan has been announced for the national airline.
He also said there is no taxpayer-funded financing arrangement for PIA. According to him, the government is helping the airline explore international financing options.
The development follows the privatization of PIA. Schehzad explained that privatization does not prevent the government from supporting access to international financing.
He said the government is facilitating discussions with international financing institutions and suppliers. Private businesses, however, remain responsible for investment and commercial decisions.
Schehzad also discussed potential financing through the US Export-Import Bank (US EXIM). The institution can provide financing to foreign buyers of US-made aircraft.
Airlines can potentially access such financing through commercial arrangements. The financing can also be secured against the aircraft being purchased.
This structure means a sovereign government guarantee is not automatically necessary. Schehzad stressed that no such guarantee has been announced for PIA.
He further stated that the government has not announced any state-backed financing. There is also no publicly announced government loan for the airline.
The clarification came after discussions involving Pakistan’s Finance Ministry and US EXIM. Finance Minister Muhammad Aurangzeb recently met US EXIM Chairman John Jovanovich.
The meeting included discussions about possible aircraft financing for PIA. Officials also discussed other investment opportunities during the meeting.
These included refinery upgrades and the Reko Diq mining project. The discussions were part of broader efforts to explore international financing options.
Schehzad said the government’s role is to facilitate access to international financing. It can also help connect businesses with international suppliers.
However, private companies will make their own investment decisions. They will also remain responsible for commercial arrangements linked to such financing.
The adviser’s comments clarify the distinction between government support and direct public financing. Helping an airline access international markets does not necessarily mean providing a government loan.
For PIA, international aircraft financing could provide another option for future fleet-related investment. Such financing would depend on commercial terms and relevant lender requirements.
The government has not announced a sovereign guarantee for any such arrangement. It has also not announced taxpayer-funded financing for PIA.
The airline’s privatization remains relevant to the financing discussion. Schehzad said the government can still facilitate access to international financial institutions.
This approach could allow PIA to explore financing opportunities without direct public borrowing. The final commercial decisions would remain with the private business involved.
The government’s clarification aims to address reports suggesting that taxpayers would finance a new loan. Officials have instead described their role as facilitating international financing opportunities.
Any future financing arrangement would depend on negotiations with relevant institutions. It would also be subject to commercial and financial conditions.
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For now, officials have confirmed that no public loan or sovereign guarantee has been announced for PIA.
