Business Desk 
Nov 06, 2025
A Pakistan International Airlines (PIA) plane prepares to take-off at Allama Iqbal International Airport in Lahore. — Reuters
The Ministry of Defence has clarified that Pakistan International Airline Company Limited (PIACL) did not receive a Rs24 billion bailout from the government, as reported on social media and news outlets.
Defence Minister Khawaja Muhammad Asif explained in a written response to the National Assembly that the airline has utilised the amount as bridge financing facilities in multiple tranches from the Pakistan Civil Aviation Authority (PCAA).
The Ministry of Defence noted that the finance was necessary for PIA to maintain its flight operations in the midst of severe cash flow constraints.
As part of the ongoing existing debt restructuring process, of the total among the Rs24 billion financing, Rs17 billion was transferred to PIA Holding Company Limited (PIAHCL), and the remaining Rs7 billion will be paid by PIACL, the Ministry of Defence added.
The response indicated that PIA’s accumulated losses, now approximately Rs720 billion, underinvestment in modernising the fleet, high fuel costs, and structural challenges within the Pakistani aviation ecosystem.
The Defence Ministry said that government support has mainly covered operational expenses rather than upgrades or new aircraft purchases. Heavy taxes on aircraft imports and spare parts have also limited capacity expansion.
Currently, less than half of the PIA fleet is operational, resulting in diminished capability on domestic and international routes, while regional competitors continue to expand.
