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Pakistani flag carrier raises USD 130 million

AFP  |  Karachi 

Pakistan's national flag carrier said today it has raised USD 130 million in fresh financing from a consortium, as the airline staggers under the weight of earlier loans totalling more than USD 3 billion.

International Airlines (PIA) said in a statement the financing facility was arranged by Pakistan's United Limited (UBL) and Credit Suisse as lead bankers, in addition to the state-run National of

"The (financing) facility... Will be utilised by PIA for its general working capital requirements and in improvement in passenger services," the statement said.

However, a PIA official requesting anonymity said the fresh loan might be utilised to help settle earlier loans.

PIA's cumulative loans stand at around 329 billion rupees, or USD 3.16 billion. It suffers heavy financial losses annually, posting a 32 billion rupee loss in 2015.

Prime Minister Nawaz Sharif's tried to privatise the airline earlier this year but its 18,000 employees fiercely resisted.

Two employees were killed in February as police tried to clamp down on protesting employees outside the airline's head office in Karachi.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 28 2016. 21:07 IST