ISLAMABAD: United States Export-Import (Exim) Bank has agreed to provide $55 million funding to Pakistan for the refurbishment of Pakistan International Airlines' (PIA) Boeing aircraft engines by American company General Electric (GE).

The $55 million deal ─ Exim's largest financing activity in Pakistan since 2006 ─ will pay for the refurbishment of PIA's ageing Boeing 777 fleet by US conglomerate GE.

The deal is expected to enhance overall engine performance of the domestic carrier's Boeing aircraft.

The signing ceremony on Wednesday between GE and PIA was witnessed by US Ambassador Richard Olson, Federal Minister for Finance Ishaq Dar, Chairman of the Board of Investment Dr. Miftah Ismail, Special Assistant to the Prime Minister Captain Shujaat Azim, and Vice-Chairman GE John G. Rice, among others.

Ambassador Olson said, “Today, GE and its joint venture engines power more than 60 per cent of PIA’s aircraft, and this deal to refurbish many of those engines will power PIA well into the future," adding that such a partnership could go a long way towards connecting Pakistan with the rest of the world.

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Prime Minister Nawaz Sharif had earlier said that PIA had been in very bad shape but efforts were being made to revive it.

He had hinted that the privatisation of 26 per cent share of PIA was the only solution to revive the PIA; however, he said the airline’s employees should not be worried as they would be taken care of.

Last year, PIA had received poor response from public relations and media management firms for its plan to improve its image by hiring a PR firm.

Hardly any reputed PR firm was interested in taking part in the bidding process, considering that PIA was a ‘dead product’ to sell, an official of a well-known PR company had told Dawn.

The management of my firm initially thought about participating in the bidding, but decided against it because it could not find enough positives about PIA, he said.