AirBus A320 acquired for $13 million by PIA from Indonesia to fly to Pakistan today

An Airbus A320 aircraft owned by Pakistan International Airlines (PIA) flies over Lahore, Pakistan, on August 27, 2021. (Photo courtesy: Abdullah A Mughal/Snappers Crew)
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Updated 05 December 2023
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AirBus A320 acquired for $13 million by PIA from Indonesia to fly to Pakistan today

  • The purchase by the loss-making airline is part of $26 million two-plane deal
  • PIA has accumulated hundreds of billions of rupees in losses and arrears

KARACHI: An Airbus A320 acquired by Pakistan International Airline (PIA) for $13 million from Indonesia will land in Karachi on Tuesday night, a spokesperson for the airline said.

Loss-making PIA has accumulated hundreds of billions of rupees in losses and arrears. The government announced in August it would privatize the airline, a move that would be in line with an International Monetary Fund (IMF) deal.

PIA leased two Airbus A320 planes from leasing company AirAsia in 2012. The lease concluded in September 2021, after which PIA returned the aircraft to the leasing company. However, a dispute arose when AirAsia declined to accept the planes, contending they were not returned in satisfactory condition.

The row continued for nearly two years and the airline finally struck a deal with the leasing company to buy the two planes after a PIA delegation met with AirAsia officials in Jakarta in October.

“PIA has acquired these aircraft, which were earlier sent to Jakarta for return to the leasing company, AirAsia, upon the completion of a six-year lease,” PIA spokesman Abdullah Khan told Arab News.

“The lessor agreed to PIA's proposal of buying out these aircraft at the price of $26 million.”

PIA made a payment of $13 million last week, the spokesman said, after which one aircraft was released and flying to Pakistan today, Tuesday. 

“One aircraft will land at Karachi airport today at 11pm, while the second one will be acquired after paying the remaining $13 million within the next couple of weeks,” Khan added.

The purchase comes at a time of deep crisis for the loss-making airline, which the government says it can no longer fund. PIA has also been in disputes with the Pakistan State Oil company (PSO) over payments.

The airline has long been in trouble. 

PIA flights to Europe and the UK have been suspended since 2020 after the European Union's Aviation Safety Agency revoked the national carrier's authorization to fly to the bloc following a scandal over pilot licences.


Islamabad steps up vehicle checks to boost security as 166,000 cars get electronic tags

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Islamabad steps up vehicle checks to boost security as 166,000 cars get electronic tags

  • Authorities say over 3,000 vehicles registered in past 24 hours as enforcement intensifies
  • Extended service hours introduced to push full compliance with digital monitoring system

ISLAMABAD: Authorities in the Pakistani capital have intensified enforcement against vehicles without mandatory electronic tags with more than 166,000 cars now registered, according to data released on Sunday evening, as Islamabad moves to strengthen security and digital monitoring at key entry and exit points.

The Islamabad Capital Territory (ICT) administration introduced the electronic tagging system late last year as part of a broader effort to regulate traffic, improve record-keeping and enhance surveillance in a city that hosts the country’s main government institutions, foreign missions and diplomatic enclaves.

Under the system, vehicles are fitted with electronic tags that can be read automatically by scanners installed at checkpoints across the capital, allowing authorities to identify unregistered vehicles without manual inspections. Vehicles already equipped with a motorway tag, or m-tag, are exempt from the requirement.

“A total of 166,888 vehicles have successfully been issued M-Tags so far, including 3,130 vehicles in the last 24 hours,” the ICT administration said, according to the Excise Department.

Officials said readers installed at checkpoints across Islamabad are fully operational and are being used to stop vehicles still without tags, as enforcement teams carry out checks across the city.

To facilitate compliance, authorities have expanded installation facilities and extended operating hours. The Excise Department said m-tag installation is currently available at 17 booth locations, while select centers have begun operating beyond normal working hours.

According to Director General Excise Irfan Memon, m-tag centers at 26 Number Chungi and 18 Meel are providing services round the clock, while counters at Kachnar Park and F-9 Park remain open until midnight to accommodate motorists unable to visit during daytime hours.

Officials said the combination of enforcement and facilitation was aimed at achieving full compliance with minimal disruption, adding that operations would continue until all vehicles operating in the capital are brought into the system.

The enforcement drive builds on a wider push by the federal government to integrate traffic management, emergency response and security monitoring through technology-driven “safe city” initiatives. Last month, Interior Minister Mohsin Naqvi reviewed Islamabad’s surveillance infrastructure and said reforms in monitoring systems and the effective use of technology were the “need of the hour.”

Authorities have urged motorists to obtain electronic tags promptly to avoid delays and penalties at checkpoints as enforcement continues across the capital.