The Federal Board of Revenue (FBR) has taken action against Pakistan International Airlines (PIA) for failing to pay taxes totaling more than Rs. 2 billion, causing the airline to suffer a financial setback.
In reaction to the unpaid tax debt, the FBR also had 53 of the national carrier’s bank accounts blocked the previous year.
Nevertheless, there is optimism for a resolution because the PIA government has pledged to quickly clear the taxes. In the past, the bank accounts were restored following such pledges.
Along with problems with taxes, the PIA is having issues with its scheduled flights. The PK-309 (Islamabad-Karachi), PK-330 (Karachi-Multan), and PK-739 (Multan-Jeddah) flights are all affected since the Pakistan State Oil (PSO) has refused to provide fuel for three PIA aircraft.
PIA Accounts Freeze By FBR
The PIA representative confirmed that the accounts had been frozen and said that they were in contact with the FBR at the federal level to address the situation and unfreeze the accounts.
The representative promised customers that flight operations won’t be hindered despite the account freeze.
The decision-making process for pay rises for its staff has also been impacted by PIA’s financial struggles. Due to the ongoing financial issues, the board of directors has been unable to decide on this issue.a
The reorganization of PIA was agreed by the board of directors following a briefing to address the overall status of the airline. The creation of a holding company to manage the properties and losses is one of the suggested approaches.
A comprehensive plan for the reorganization of the national entity is in the works as per the board’s directives.
Despite these challenges, there is some positive news for PIA, as steps have been taken to restore direct flight operations to Europe, the United Kingdom (UK), and the United States (US).
The European Union Aviation Safety Agency (EASA) will be conducting a physical audit in Pakistan in September, and the authorities have made preparations in anticipation of the EASA team’s visit.
To read our blog on “1 PIA crew member ‘disappear’ in Canada, baffle authorities,” click here.
