Govt clarifies no state-backed loan or guarantee for PIA aircraft

September 27, 2026 (MLN): The role of privatization and the U.S. Export-Import Bank (EXIM Bank) in relation to Pakistan International Airlines (PIA) has been clarified by Adviser to the Finance Minister Khurram Schehzad.

Khurram Schehzad said the government is neither purchasing aircraft for PIA after its privatization nor has it announced any government guarantee or taxpayer-funded loan for this purpose.

He said, like EXIM banks worldwide, the primary objective of the U.S. Export-Import Bank is to promote U.S. exports and employment.

Boeing aircraft are U.S. exports, while the U.S. EXIM Bank provides financing support to foreign buyers, including airlines, he said.

The adviser said the U.S. EXIM Bank framework allows asset-based aircraft financing, under which the aircraft itself can be used as security, while a government guarantee is not a mandatory requirement.

He said the government’s role is to open and facilitate access to international financing, technology, suppliers and investment for Pakistani businesses.

Khurram Schehzad said the Finance Minister’s discussions with the U.S. EXIM Bank were not limited to PIA.

He said potential financing opportunities in aviation, refinery expansion and improvement, and Reko Diq were also discussed.

The government is pursuing a policy of gradually reducing the state’s role in commercial activities, advancing privatization and creating greater space for private investment, he said.

Khurram Schehzad said private-sector-led growth does not mean the government is withdrawing from the private sector, but rather facilitating businesses and creating a conducive environment instead of running businesses itself.

He said no arrangement involving “public debt,” “hidden subsidies” or “state financial backing” has been announced.

The adviser clarified that the government statement referred to potential U.S. EXIM Bank financing and did not announce a government loan or government guarantee for PIA.

“Privatization means the transfer of ownership and commercial management, not closing opportunities and international doors for Pakistani companies,” he said.

“The distinction is clear: the government facilitates, businesses invest and operate,” Khurram Schehzad said, adding that financing is structured according to its commercial terms and financial framework.

Copyright Mettis Link News