Pakistan International Airlines (PIA) is on the verge of securing a loan worth $300 million from international banks without government’s sovereign guarantee.

According to reports, the proposed loan would be utilized to procure new aircraft, engines, and spare parts.

Earlier, PIA had to obtain a sovereign guarantee from the federal government to secure loans from international lenders, a process that took nearly four months.

According to the spokesperson of the PIA, Abdullah Hafeez Khan, a consortium of Credit Suisse, Mashreq Bank, and Noor Bank will provide a loan of $300 million to PIA.

Abdullah Hafeez Khan says that the national flag carrier’s handsome revenue growth, enhanced operational performance, cost-saving measures, consistent product improvement, and positive global perception has played important role in securing the loan without the federal government’s sovereign guarantee