Pakistan is exploring potential financing from the US Export-Import Bank for aircraft planned for the privatised Pakistan International Airlines (PIA), a senior government adviser said.
Finance Minister Muhammad Aurangzeb discussed possible US Exim support during a meeting with the bank’s chairman, John Jovanovich, in New York. The talks also covered financing options for refinery upgrades and the Reko Diq mining project in Balochistan.
Finance Minister’s adviser Khurram Schehzad clarified that the government is helping PIA connect with international financiers and suppliers. He said the state is not purchasing aircraft for the airline and has not announced any sovereign guarantee or taxpayer-funded loan.
The clarification followed questions about whether the government could provide financial support to PIA after its privatisation. Schehzad said potential US Exim financing should not be described as a government loan or a hidden subsidy.
PIA was privatised after an Arif Habib-led consortium offered Rs135 billion for a 75% stake in the national airline. The bid exceeded the government’s reference price of Rs100 billion.
The transaction documents were signed in January 2026. Management control was transferred to the investor consortium after the first financial closing in June. The consortium committed Rs180 billion in total investment, including Rs55 billion for the government and Rs125 billion in fresh investment in PIA.
During the meeting in New York, Aurangzeb highlighted PIA’s interest in Boeing aircraft, including 787 Dreamliners. He also sought financing support for aircraft and engines and discussed spare parts needed to bring grounded Boeing 777 aircraft back into service.
Schehzad said US Exim’s role is to support American exports and employment. He explained that the bank can provide financing to foreign buyers of US-made aircraft. Such financing could potentially be secured against the aircraft, depending on the airline or lessee’s creditworthiness.
He added that a sovereign guarantee would not automatically be required under such an arrangement.
According to Schehzad, the government’s role is to facilitate access to international financing, technology and suppliers rather than directly fund PIA’s commercial purchases.
He said the discussions with US Exim were part of wider Pakistan-US economic engagement. The talks covered aviation, refinery development and the Reko Diq project.
Schehzad also said the government’s position remains aligned with its policy of reducing direct state involvement in commercial activities while encouraging private investment. He stressed that privatisation transfers ownership and management but does not prevent the government from helping businesses access international financing and commercial opportunities.
