No govt loan, sovereign guarantee announced for new PIA aircraft: FinMin adviser

Finance Ministry adviser Khurram Shahzad has said no government loan or sovereign guarantee has been announced for financing new aircraft for privatised Pakistan International Airlines (PIA).

In a post on X, finance ministry advisor said the government was neither buying aircraft for PIA nor providing any announced sovereign guarantee or taxpayer-funded loan for the purpose.

Khurram Shahzad said some commentary being circulated appeared to misunderstand both privatisation and the role of an export credit agency.

He said the US Export-Import Bank (US EXIM), like other export credit agencies, supports its country’s exports and jobs by providing financing support to foreign purchasers of US-manufactured aircraft, including airlines.

Shahzad said US EXIM’s framework provides for asset-backed aircraft financing, under which financing can be secured against the aircraft itself, while credit can be assessed on the airline, lessee or guarantor, if any.

“A sovereign guarantee is therefore not an automatic requirement,” he added.

𝗟𝗲𝘁’𝘀 𝗴𝗲𝘁 𝘁𝗵𝗲 𝗳𝗮𝗰𝘁𝘀 𝘀𝘁𝗿𝗮𝗶𝗴𝗵𝘁 𝗼𝗻 𝗣𝗜𝗔 𝗮𝗻𝗱 𝗨𝗦 𝗘𝗫𝗜𝗠.

Some commentary being circulated appears to misunderstand both privatisation and the role of an export credit agency.

𝙏𝙝𝙚 𝙂𝙤𝙫𝙚𝙧𝙣𝙢𝙚𝙣𝙩 𝙞𝙨 𝙣𝙚𝙞𝙩𝙝𝙚𝙧 𝙗𝙪𝙮𝙞𝙣𝙜…

— Khurram Schehzad (@kschehzad) September 27, 2026

The adviser said the government’s role was to facilitate access to international financing, technology and suppliers while promoting investment and commercial opportunities.

He added that the Finance Minister Mohammad Aurangzeb’s engagement with US EXIM was not limited to PIA and also covered potential financing for aviation, refinery upgrades and the Reko Diq mining project as part of broader Pakistan-US economic engagement.

Shahzad said the government’s economic direction was aimed at reducing the state’s role in commercial activity, pursuing privatisation and creating greater space for private capital.

He said private-sector-led growth did not mean the government would abandon the private sector, but would enable businesses rather than run them itself.

The adviser said claims of a “public loan”, “hidden subsidy”, “state backstop” or taxpayers assuming PIA’s commercial risk should not be presented as facts when no such arrangement had been announced.

He said the official statement referred to potential US EXIM financing support and did not announce government borrowing for PIA or a sovereign guarantee.

“Privatisation transfers ownership and commercial management,” Shahzad said, adding that it did not prevent the government from facilitating opportunities for Pakistani companies.