Maybe - but Pakistan is not exactly a liberal democracy, and will surely do it's level best to hinder any competition to PIA in the regions.
We'll have to wait and see.
But in any event UKIA seem to have spent a lot of cash thus far, and earned little, if no money in return. Given the more difficult global financial situation that exists now, I would have though their bankers would be looking for some pretty concrete assurances that their loans (and I feel sure banks will have loaned at least some cash) are safe.