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PIA gets Rs 1b from CAA to pay staff salaries as financial crisis continues

06:55 PM | 16 Sep, 2023
PIA gets Rs 1b from CAA to pay staff salaries as financial crisis continues

ISLAMABAD - The employees of the national carrier of Pakistan were bailed out partially by the Civil Aviation Authority as the latter provided funds worth a billion to the carrier.

Sources close to the developments confide that the payment was made to clear the salaries of the carrier's staff.

With the latest financial injection, the staff has been paid their salaries till August though the financial crisis of the airline still exists to this day which recently prompted the grounding of aircraft as well. 

Meanwhile, Pakistan International Airlines (PIA) also secured much-needed Rs18 billion of funds in bank loans on Friday to avoid suspension of flight operations.

“The PIA has obtained a loan of Rs18 billion from two banks which was used to clear the necessary dues,” PIA Spokesperson Abdullah Khan told Geo News.

Besides, in a statement, the spokesperson said that PIA was making the most essential domestic and international payments and the operations are in full flow and all flights are being operated.

“The PIA has a strong network worldwide. The PIA has an adequate number of aircraft for international and domestic flights through which air operations are ongoing," he elaborated.

The national carrier - which was once seen by international carriers as a success story - was recently on the brink of grounding 15 planes bringing down the number of operational aircraft further.  

PIA's challenges worsened after it was reported last week that the supply of spare parts to the carrier could be suspended over cash flow problems.

Earlier, the Economic Coordination Committee (ECC) also discussed issues pertaining to PIA which has been sustaining losses for quite a long period of time now.

After detailed deliberation, the participants decided to constitute a separate committee for the assessment of the restructuring plan of PIA but rejected the PIA's demand for the provision of Rs22.9 billion and deferment of Rs1.3 billion per month to the Federal Bureau of Revenue (FBR) as well as loans and markup amount till the finalization of the restructuring plan.

During the meeting, the secretary Aviation gave a detailed briefing to the chair about the financial burdens, liabilities of PIA, and the need for restructuring the state-owned enterprise.

The participants of the high-profile meeting discussed and reviewed the timelines and costs of the restructuring plan and after detailed discussion, it was decided to constitute a separate committee for the assessment of PIA's restructuring plan.

The participants also came to the conclusion that the Finance Division and State Bank of Pakistan would support PIA in dealing with its financial challenges after a concrete plan for restructuring the airlines was finalized and submitted to the satisfaction of the committee.

There have been demands for privatizing the national carrier due to its economic nonviability. Former Aviation Minister Khawaja Saad Rafique also stressed the importance of privatizing the carrier or else it would have to shut operations.

In the final days of the PDM regime, it was also decided to privatize loss-making Pakistan International Airlines during a meeting of the Cabinet Committee on Privatization chaired by then Finance Minister Ishaq Dar.

The committee “after deliberation decided to include Pakistan International Airlines Co. Ltd. in the list of active privatization projects of the ongoing privatization program, following an amendment in the law by the Parliament,” a finance ministry statement had said.

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Today's currency exchange rates in Pakistan - Dollar, Euro, Pound, Riyal rates on October 4, 2023

KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on October 4, 2023 (Wednesday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 283.5 286.45
Euro EUR 302 305
UK Pound Sterling GBP 351.5 355
U.A.E Dirham AED 78.7 79.5
Saudi Riyal SAR 75.45 76.2
Australian Dollar AUD 180.2 182
Bahrain Dinar BHD 766 774
Canadian Dollar CAD 210 212
China Yuan CNY 39.62 40.02
Danish Krone DKK 40.55 40.95
Hong Kong Dollar HKD 36.74 37.09
Indian Rupee INR 3.46 3.57
Japanese Yen JPY 1.63 1.71
Kuwaiti Dinar KWD 931.36 940.36
Malaysian Ringgit MYR 61.27 61.87
New Zealand Dollar NZD 171.55 173.55
Norwegians Krone NOK 26.92 27.22
Omani Riyal OMR 748.35 756.35
Qatari Riyal ‎QAR 79.03 79.73
Singapore Dollar SGD 206 208
Swedish Korona SEK 26.34 26.64
Swiss Franc CHF 313.85 316.35
Thai Bhat THB 7.79 7.94

Gold Rate in Pakistan Today – October 4, 2023

Today Gold Rate in Pakistan

KARACHI - The price of a single tola of 24-karat gold in Pakistan is Rs 201,100 on Wednesday.

The price of 10 grams of 24k gold was recorded at Rs 172,410.

Likewise, 10 grams of 22k gold were being traded for Rs168,730 while a single tola of 22-karat gold was being sold at Rs196,807.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

Today Gold Price in Pakistan - 4 October 2023

City Gold Silver
Lahore PKR 201,100 PKR 2,300
Karachi PKR 201,100 PKR 2,300
Islamabad PKR 201,100 PKR 2,300
Peshawar PKR 201,100 PKR 2,300
Quetta PKR 201,100 PKR 2,300
Sialkot PKR 201,100 PKR 2,300
Attock PKR 201,100 PKR 2,300
Gujranwala PKR 201,100 PKR 2,300
Jehlum PKR 201,100 PKR 2,300
Multan PKR 201,100 PKR 2,300
Bahawalpur PKR 201,100 PKR 2,300
Gujrat PKR 201,100 PKR 2,300
Nawabshah PKR 201,100 PKR 2,300
Chakwal PKR 201,100 PKR 2,300
Hyderabad PKR 201,100 PKR 2,300
Nowshehra PKR 201,100 PKR 2,300
Sargodha PKR 201,100 PKR 2,300
Faisalabad PKR 201,100 PKR 2,300
Mirpur PKR 201,100 PKR 2,300

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