The government and banks agree on the reprofiling of PIA loans.

The sources claim that the terms of the agreement call for the return of assets and NOCs (No Objection Certificates) to PIA from the commercial banks in the coming week.

The signature of the term sheet will result in the banks obtaining a 10-year loan for PIA at an interest rate of about 12 percent.

It is stated in the term sheet that up to 51 percent of PIA’s shares will be offered for sale under the original structure. Nonetheless, the airline’s government would continue to possess 49% of its shares, according to the Privatisation Commission’s proposals.

According to people with knowledge of the situation, PIA’s privatisation proceeds are designated for the airline’s resuscitation.

Furthermore, as mandated by the Ministry of Finance, prospective purchasers of PIA will need to contribute a minimum of 51 percent of their own funds to the organisation.

In addition, insider sources have revealed that the dividends that PIA will receive if it becomes profitable would help with the repayment of the debt that was given to the banks.

Additionally, once PIA turns a profit, the term sheet gives banks the freedom to issue conventional, Islamic, or Sukuk bonds as part of the financing arrangement.