Two undisclosed banks have lent PIA - Pakistan International Airlines (PK, Islamabad International) emergency funding totalling PKR18 billion Pakistani rupees (USD60.7 million), according to spokesperson Abdullah Khan, who told ch-aviation outlet the airline had secured the funds on September 15.

The funds will be used to bring payroll obligations up to date and stabilise flight operations. The airline had suspended some services due to an inability to pay fuel bills and perform day-to-day maintenance on some aircraft. There were also reports Airbus and Boeing were readying to suspend the spare parts supply if PIA's cash situation further deteriorated. At its nadir, 14 of PIA's 31 aircraft sat idle due to a lack of funds to pay for leases and spares. Khan was unwilling to disclose to ch-aviation the names of the lending institutions, but did say they were Pakistani banks.

He has denied speculation PIA was on the brink of suspending all flight operations, telling local media outlets the state-owned carrier has a solid foundation and the ability to deal with difficult situations. PIA is reportedly generating monthly revenues of approximately PKR22 billion (USD74.2 million) and monthly expenses of PKR34 billion (USD114.7 million), resulting in a monthly deficit of PKR12 billion (USD40.5 million). To help stabilise the airline's financial situation, Pakistan's government wants to restructure PIA under a public-private partnership with a foreign entity.

Separately, Pakistan's Civil Aviation Authority (PCAA) has provided PIA with around PKR1 billion (USD3.37 million) to bring its IATA dues up-to-date. Funding from the banks was contingent on PIA maintaining its IATA membership. Having secured that funding, PIA is expected to return the money to the PCAA within days. IATA confirmed to ch-aviation that all oustanding amounts were settled last week

With immediate financial pressure easing, the airline talked up plans over the weekend to resume flying to the United Kingdom (UK) and the European Union (EU). A British Department for Transport (DfT) team will visit Pakistan in October for an operational and safety audit, with the EU's Aviation Safety Agency (EASA) team visiting in November.

Meanwhile, the Pakistani government continues to kick around plans to sell the PIA-owned Roosevelt Hotel in New York, which, in recent years, a local housing agency has used to accommodate immigrants, generating PIA (and the Pakistani government) USD220 million annually. The Pakistani government has reportedly invited proposals regarding appointing a financial advisor to help facilitate the sale. In 2021, the 19-story was valued at over USD550 million, but taxes and other liabilities connected with the property could reduce that amount by around 50%.