ISLAMABAD: Pakistan is exploring possible aircraft leasing and fleet modernization arrangements involving Airbus and Rolls-Royce for the newly privatized Pakistan International Airlines (PIA), the commerce ministry said on Thursday, as Islamabad seeks international partnerships to strengthen the airline’s operations.

The discussions follow Pakistan’s efforts last month to secure potential US financing for Boeing aircraft and engines, suggesting the government is exploring multiple international suppliers and financing arrangements to help PIA rebuild its fleet.

The latest proposals were discussed during a meeting between Commerce Minister Jam Kamal Khan and British High Commissioner Jane Marriott in Islamabad, according to a commerce ministry statement.

The two sides discussed possible arrangements involving Airbus aircraft and Rolls-Royce engines, including leasing options to meet PIA’s immediate requirements and longer-term plans to modernize its fleet.

“PIA’s direct international flights are an important commercial asset,” Khan said, according to the ministry’s statement.

He said restoring passenger confidence would require improvements in service quality, reliable flight operations and modernization of the airline’s aircraft fleet.

The discussions come after Finance Minister Muhammad Aurangzeb met US Export-Import Bank Chairman John Jovanovich in New York last month to explore financing for PIA aircraft and engines.

During that meeting, Aurangzeb expressed the airline’s interest in Boeing aircraft, particularly 787 Dreamliners, and sought support for a financing package that could include aircraft pre-delivery payments.

The government subsequently clarified that it would neither purchase aircraft for privatized PIA nor provide a sovereign guarantee or taxpayer-funded loan for their acquisition.

It said that its role was to facilitate access to international financing, technology and suppliers, with commercial risks remaining with the airline and its investors.

PIA was privatized after an Arif Habib-led consortium won a 75 percent stake in the airline for Rs135 billion ($486 million) in December 2025, part of Pakistan’s broader effort to reduce the financial burden of loss-making state-owned enterprises. Management control was transferred to the consortium in June 2026.

Fleet modernization is a key challenge for the airline as it seeks to expand international operations, improve operational reliability and regain passenger confidence.

The aviation discussions formed part of a broader meeting on Pakistan-UK trade and investment cooperation, during which the two sides also explored opportunities in health care, information technology, agriculture, livestock, financial services and minerals.

Khan also highlighted opportunities for British investment and technology in Pakistan’s livestock industry, particularly to increase meat production, value addition and exports.

The two sides discussed improving international branding and market access for Pakistani products, including textiles, surgical instruments, food products, pink salt and olive oil.