Islamabad: The International Monetary Fund (IMF) has approved the plan to privatize the national airline PIA.
According to the sources, the negotiations between the officials of the Ministry of Privatization and the Ministry of Finance have been successful, in which the IMF has taken the in-principle approval of the loan rescheduling plan for the privatization of PIA.
Sources say that the final approval for PIA's debt rescheduling plan will be taken from the federal cabinet, while according to the Privatization Commission and Finance Ministry's plan, the IMF has approved the PIA's privatization plan.
According to the sources, the IMF has agreed to pay the interest on the PIA loan to the government of Pakistan for one year. The government of Pakistan will pay the 280 billion loan to the banks at 12 percent interest for one year.
The IMF says that banks should not be burdened with interest payments on PIA loans for more than one year.
According to the sources, PIA will be privatized and a loan repayment plan will be made in one year. After privatization, a loan repayment plan is likely to be made from the dividend of Velet Hotel and PIA.
Sources say that upon the approval of the Cabinet, the privatization will be accelerated by the end of payment charges on PIA by the commercial banks, further discussions with the IMF will continue during this week on the PIA debt rescheduling plan.
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