Pakistan International Airlines (PIA) recently experienced flight interruptions due to a lack of aircraft, with functioning jets stranded at Middle Eastern airports.
The national flight carrier plane was grounded at Dammam airport, and four more planes were detained in Dubai due to unpaid fuel costs.
However, these planes were allowed to depart when PIA offered a written promise that the bill would be settled.
PIA Paid $3.5 Million Fine To IATA
Pakistan International Airlines has had its flights temporarily banned by the International Air Transport Association (IATA). The matter was settled after PIA paid a $3.5 million fine.
A related development was the cancellation of several national flight carrier flights owing to budgetary concerns. Due to PIA’s failure to pay fuel payments owed to Pakistan State Oil (PSO), multiple domestic flights to and from Karachi were canceled.
Routes affected included Karachi-Muscat, as well as internal routes from Karachi to Faisalabad, Islamabad, and Lahore, among others.
Furthermore, there is growing concern that national flight carrier may be forced to ground further planes if financial difficulties remain.
According to reports, 15 more flights might be grounded within two days if the due money is not paid, potentially totaling more than 30 planes grounded.
FBR Unfreezes Bank Accounts
Meanwhile, Pakistan International Airlines’ bank accounts have been reopened following the settlement of overdue dues disputes with the Federal Board of Revenue (FBR).
According to the agreement, the bank accounts were restored after national flight carrier offered written assurances and guaranteed the clearing of all overdue dues.
According to an FBR spokeswoman, national flight carrier will pay Rs. 2.5 billion in compliance with the terms this month.
Due to unpaid taxes totaling Rs. 8 billion, the Federal Board of Revenue (FBR) had closed PIA’s bank accounts.
PIA had earlier agreed to pay Rs. 2 billion in Federal Excise Duty dues in August, but had failed to do so.
These developments underline Pakistan International Airlines’ (PIA) acute financial problems, raising questions about the airline’s capacity to continue operating despite rising debts.
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