Islamabad:Khurram Schehzad, the Finance Minister's Adviser, has clarified that the government is not purchasing aircraft for a privatized Pakistan International Airlines (PIA), nor has it announced any sovereign guarantee or taxpayer-funded loan for this purpose.
According to Radio Pakistan, Schehzad addressed misunderstandings circulating about the privatization process and the role of export credit agencies. He explained that the US Export-Import Bank, like other export credit agencies, supports its country's exports and jobs. Boeing aircraft are categorized as US exports, and the US EXIM provides financing support to foreign purchasers of US-manufactured aircraft, including airlines, through established financing structures.
Schehzad emphasized that the Finance Minister's discussions with US EXIM were broader and not limited to PIA. The engagement also covered potential financing for aviation, refinery upgrades, and the Reko Diq project as part of enhanced economic cooperation between Pakistan and the US.
He reiterated the government's policy to reduce its role in commercial activities, pursue privatization, and create more space for private capital. This approach aims to enable private-sector-led growth rather than having the government run businesses.
Schehzad further clarified that there has been no announcement of a public loan, hidden subsidy, state backstop, or taxpayers assuming PIA's commercial risk. The official statement only refers to potential US EXIM financing support, not government borrowing or a sovereign guarantee for PIA.
He concluded by stating that privatization involves transferring ownership and commercial management, but the government will still facilitate opportunities for Pakistani companies.