The government will issue Islamic bonds to raise funds for PIA

Islamabad: To overcome the financial challenges faced by Pakistan International Airlines (PIA), the federal government decided to issue Islamic bonds.

Official documents, copies of which are available at Geographic News, Revealed that the federal government’s goal is to raise 20 billion rupees worth of funds through 10-year sukuk.

“The Shariah-compliant secured Sukuk bonds up to Rs 20 crore, including green shoe options of Rs 5 crore, were subsequently listed on the Pakistan Stock Exchange (private placement) (“PIA Sukuk-I” or “Sukuk Issue”),” the bond advertisement read.

A source familiar with the development was informed Geographic News PIA’s assets—such as land, buildings, and ships—will be used as collateral for these bonds.

PIA has not been privatized

As early as April, Aviation Minister Gulam Sawar informed the National Assembly that there was no plan to privatize PIA.

He told NA during question time that the current government is very keen to make Flag Airlines a self-reliant and profitable entity.

He has stated that he is working to improve the financial situation of airlines by reducing losses in various ways.

Sarwar pointed out that loss-making routes have been closed and the number of flights on profitable routes has been increased, thereby reducing losses.

In response to a question, the Secretary of Aviation said that 82 pilots had been fired for obtaining licenses through unfair methods.