Govt approves Rs44b bailout for PIA

The government on Wednesday approved a Rs44 billion bailout package for Pakistan International Airlines (PIA) in the shape of cash and sovereign guarantees after its failure to bring any improvement to the financial condition of the national flag carrier in three years.

The Economic Coordination Committee (ECC) of the cabinet approved the bailout package - the fourth by the Pakistan Tehreek-e-Insaf (PTI) government - without a viable business plan.

The ECC also approved Rs28 billion in additional budget for the defence ministry to strengthen security around China-Pakistan Economic Corridor (CPEC) projects and fence the Pak-Iran border.

“The ECC considered and approved a summary for GOP cash support as required by PIAC,” said the Ministry of Finance press statement.