ISLAMABAD: Pakistan’s national air carrier issued a statement on Friday, denying the rumors of its closure due to an ongoing financial crisis that had led to recent reports suggesting its management was scaling back flight operations.
The airline is said to be on the brink of default after the government turned down its request for a Rs23 billion ($76 million) bailout package to help alleviate its cash crunch.
The authorities have previously released substantial funds to assist Pakistan International Airlines (PIA) in meeting its operational expenses.
However, the airline has continued to accumulate billions of rupees in arrears and losses over the years, prompting the government to seek a restructuring plan before coming to its rescue.
“The apprehensions and reports regarding the closure of PIA are baseless and untrue,” stated its spokesperson, Abdullah Hafiz Khan. “PIA has suffered significant damage to its reputation due to those who falsely claimed September 15 as the date of its closure.”
Khan confirmed that the airline had paid salaries to its employees and was maintaining its flight operations.
“PIA is built on a strong foundation and has the full capacity to handle such situations. It boasts a robust global network, and its fleet operates worldwide.”
Khan also mentioned that the airline had a sufficient number of aircraft to carry out both domestic and international flights.
PIA confirmed earlier this week it had grounded 14 out of its 31 aircraft due to the financial crisis.
The country’s Economic Coordination Committee (ECC) instructed the Finance Division and the State Bank of Pakistan to assist the airline last week, but only after a restructuring plan was finalized and approved.