ANNOUNCEMENT 12 Jul 2013In July 2013, the government of Pakistan announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
The Frontier Post
9 March 2011 http://www.pakistantoday.com.pk/2011/03/09/news/national/government-extends-guarantee-for-rs-5-billion-pia-loan-by-two-years/
1 August 2012
12 October 2012
27 February 2013
28 January 2014
26 August 2014
30 October 2014
On 12 July 2013, in a meeting of Pakistan's Economic Coordination Committee (ECC), it was decided to provide a bailout of Rs. 7 billion to Pakistan International Airlines (PIA), the country's bankrupt national carrier.
The money has been provided for the loss-making airline to pay off its debts mostly to vendors of spare parts. The meeting also decided to partially privatize the airline as soon as possible and sell 30 per cent shares to the public.
The national airlines has been bailed out or given state guarantees on loans several times in the past.
- 9 March 2011 - Government guarantees on loans of Rs.5 billion extended for 2 years
- 1 August 2012 - USD 4.5 million released to support leasing of new aircraft
- 12 October 2012 - Issuance of guarantee on a fresh loan of Rs. 9.36 billion, additional 2 years government guarantee of Sukuk certificates of Rs. 6.8 billion
- 27 February 2013 - Rs. 100.5 billion to pay off debts, buy new airplanes and take state guaranteed loans
State aid after 12 July 2013 -
28 January 2014 - Fresh state guarantee for a loan of Rs. 2 billion
26 August 2014 - A government guarantee for a loan from a private bank of Rs. 1 billion was approved
30 October 2014 - A loan of Rs. 12 billion was approved
The GTA includes state-financed bailouts of enterprises that face international competitors.