Pakistan International Airlines (PIA) is facing a financial setback as the Federal Board of Revenue (FBR) has taken action against the non-payment of taxes amounting to over Rs2 billion. The FBR had also frozen 53 of the national carrier’s bank accounts last year in response to the outstanding tax dues.
However, there is hope for resolution as the PIA administration has given assurance of clearing the taxes promptly. In the past, after such commitments, the bank accounts were restored.
In addition to the tax-related woes, the PIA is facing challenges with its scheduled flights. The Pakistan State Oil (PSO) has refused to supply fuel for three PIA aircraft, affecting the operations of PK-309 (Islamabad-Karachi), PK-330 (Karachi-Multan), and PK-739 (Multan-Jeddah) flights.
The PIA spokesperson confirmed the freezing of accounts and informed that they are in communication with the FBR at the government level to resolve the issue and restore the accounts. Despite the account freeze, the spokesperson reassured that flight operations will not be impacted.
The financial hardships faced by PIA have also affected the decision-making process regarding pay raises for its employees. The board of directors has been unable to reach a decision on this matter due to the prevailing financial challenges.
To address the airline’s overall situation, the board of directors approved the reorganization of PIA after receiving a briefing. One of the proposed measures is the establishment of a holding company to handle the properties and losses. 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.
Source: Pro Pakistani