Insiders familiar with the situation revealed that nine out of 31 planes in the fleet have been grounded due to a lack of spare parts. The grounded aircraft include five Airbus-320, three Boeing-777, and one ATR craft.
There is uncertainty about the future of the national airline as it heavily relies on the State Bank of Pakistan, sources claimed. Leasing companies have also expressed concerns about Pakistan’s CCC rating and its impact on business policies.
Other airlines are also facing operational pressure due to negative ratings and a lack of foreign exchange reserves. PIA still owes more than $10 million in international payments.
Sources added that leasing and spare parts companies were charging a risk exposure premium on payments.
On January 10, Caretaker Prime Minister Anwaarul Haq Kakar instructed the authorities to expedite the privatization process of PIA, the national flag carrier.
In a meeting with his Adviser on Aviation Air Marshal (retd) Farhat Hussain, the prime minister stressed the importance of ensuring transparency in the privatization process.
PM Kakar emphasized that privatization of state-owned enterprises was a priority for the government to prevent further financial losses to the national exchequer.