Finance Ministry adviser Khurram Shahzad has said no government loan or sovereign guarantee has been announced for financing new aircraft for privatised Pakistan International Airlines (PIA).
In a post on X, finance ministry advisor said the government was neither buying aircraft for PIA nor providing any announced sovereign guarantee or taxpayer-funded loan for the purpose.
Khurram Shahzad said some commentary being circulated appeared to misunderstand both privatisation and the role of an export credit agency.
He said the US Export-Import Bank (US EXIM), like other export credit agencies, supports its country’s exports and jobs by providing financing support to foreign purchasers of US-manufactured aircraft, including airlines.
Shahzad said US EXIM’s framework provides for asset-backed aircraft financing, under which financing can be secured against the aircraft itself, while credit can be assessed on the airline, lessee or guarantor, if any.
“A sovereign guarantee is therefore not an automatic requirement,” he added.
The adviser said the government’s role was to facilitate access to international financing, technology and suppliers while promoting investment and commercial opportunities.
Shahzad said the government’s economic direction was aimed at reducing the state’s role in commercial activity, pursuing privatisation and creating greater space for private capital.
He said private-sector-led growth did not mean the government would abandon the private sector, but would enable businesses rather than run them itself.