In a major diplomatic breakthrough, the United Arab Emirates has welcomed the ceasefire agreement between Pakistan and Afghanistan, calling it a positive and humanitarian step towards restoring peace and stability in the region. The UAE’s statement reflects its consistent role as a bridge for dialogue, unity, and cooperation among Muslim nations. The Ministry of Foreign Affairs of the UAE praised the mediation efforts of Qatar and Türkiye, acknowledging their contribution in bringing both sides to the table. This gesture underlines the UAE’s belief in collective diplomacy that lasting peace is achieved not through pressure, but through partnership and understanding. UAE officials described the ceasefire as “a humanitarian victory more than a political achievement”, emphasizing that calm along the Pakistan-Afghanistan border will open doors for trade, education, and cross-border cooperation. For Pakistan, this peace offers renewed opportunities for economic growth and border stab...
Recent developments have placed Pakistan International Airlines (PIA) in a tough spot due to a serious shortage of funds. This has led to the temporary grounding of some of its planes. The airline is struggling to gather the money it needs to keep flying, which has resulted in unpaid bills to various parties like creditors, aircraft lessors, fuel suppliers, insurers, and even the International Air Transport Association (IATA).
The Ministry of Aviation has issued a strong warning, drawing attention to PIA's dire financial condition. As a result, the airline has had to take five of its 13 leased planes out of service, with the possibility of four more facing a similar fate. To make matters worse, the Ministry of Aviation has revealed that Boeing and Airbus may stop supplying spare parts by mid-September.
In an attempt to address these urgent issues, the ministry has asked for an immediate cash injection of Rs23 billion and for the suspension of duties, taxes, and service charges to domestic agencies. However, this request was made without presenting a clear and viable business plan.
This situation has raised serious concerns about PIA's future and its ability to remain in operation during the restructuring process, which is expected to take around eight months. It's vital for the airline to keep flying to ensure a fair value for its shares when they are eventually sold.
Abdullah Khan, a spokesperson for PIA, has confirmed that some leased planes have been temporarily grounded. However, he remains hopeful that they will be back in service once the outstanding payments are settled. He pointed out that blocked funds since December 2022 and challenges in converting foreign exchange are major obstacles affecting the airline's ability to meet its financial commitments.
PIA's debts have ballooned to Rs743 billion (about $2.5 billion), which is five times more than its total assets, according to Bloomberg's data. This significant financial imbalance highlights the urgency of finding a sustainable solution to the airline's financial difficulties.
In these trying times, PIA is at a critical crossroads, requiring careful financial planning, support from the government, and a clear roadmap to ensure its ongoing operation and eventual recovery.
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