Finance Minister’s Adviser Khurram Schehzad has clarified that the government is not taking a loan to finance aircraft for Pakistan International Airlines (PIA).

In a post on X on Sunday, he said the government is only helping Pakistani businesses access international financing, technology and suppliers.

Schehzad said US Export-Import Bank (US EXIM) financing can support foreign buyers of US-made aircraft, including airlines. Such financing can be secured against the aircraft itself, meaning a sovereign government guarantee is not automatically required.

He said the government has not announced any public loan, sovereign guarantee or taxpayer-funded financing for PIA.

The clarification follows Finance Minister Muhammad Aurangzeb’s meeting with US EXIM Chairman John Jovanovich. The discussions covered potential financing for PIA aircraft, refinery upgrades and the Reko Diq mining project.

The government is pursuing PIA’s privatization while reducing its direct role in commercial businesses, Schehzad said.

He added that privatization does not stop the government from helping private companies access international financing and commercial opportunities.

According to Schehzad, the basic model is simple: the government facilitates access, businesses invest and operate, while financing is arranged on commercial terms.