- PIA’s frozen bank accounts released after settling unpaid dues with FBR.
- PIA commits to paying Rs2.5 billion this month as part of the agreement.
- Ongoing financial crisis and debt issues pose challenges for PIA’s operations.
Following the resolution of a longstanding dispute with the Federal Board of Revenue (FBR) regarding unpaid dues, Pakistan International Airlines (PIA) has had its bank accounts unfrozen.
PIA’s accounts were released after the airline provided a written commitment to clear all outstanding dues and assured the tax collection authority of its intent to do so. According to an FBR spokesperson, PIA is scheduled to make a payment of Rs2.5 billion this month as part of the agreement.
Initially, the FBR had frozen PIA’s bank accounts due to unpaid taxes totaling over Rs 8 billion. Despite a prior commitment to pay Rs 2 billion in dues related to Federal Excise Duty in August, the airline had failed to meet this obligation.
It’s worth noting that PIA has been grappling with a severe financial crisis, which has raised concerns about its ability to maintain air operations in the face of mounting debts. Recent flight cancellations, particularly affecting domestic routes to and from Karachi, underscore the airline’s financial challenges, particularly its inability to settle outstanding bills with Pakistan State Oil (PSO) for fuel supply.
The resolution of the FBR issue represents a significant step toward stabilizing PIA’s financial situation.