September 15, 2023
2 mins read

PIA Cancels Flights Amid Major Financial Crisis

The flights scheduled to take off from/to the Karachi airport were cancelled after the national airline failed to pay Pakistan State Oil (PSO) for fuel supply….reports Asian Lite News

Amid a major financial crisis, Pakistan International Airlines (PIA) cancelled several domestic and international flights, ARY News reported on Thursday.

The flights scheduled to take off from/to the Karachi airport were cancelled after the national airline failed to pay Pakistan State Oil (PSO) for fuel supply.

The Pakistan-based media outlet reported that the cancelled flights include Karachi-Turbat, Karachi-Gwadar, Karachi-Quetta, Karachi-Sukkur and Karachi-Multan.

Earlier, it was reported that Pakistan International Airlines (PIA) is at risk of grounding 15 planes as it is yet to clear dues worth up to Rs 20 billion, Geo News reported.

Moreover, over 30 flights are likely to be suspended if the planes are grounded, according to the sources.

Delay in timely payment of the dues pertaining to fuel, Federal Excise Duty (FED) and lease payments, might lead to 15 planes being grounded.

The Ministry of Aviation said that overhauling the PIA is a “complicated” process and will take a year. However, during this time it is imperative to keep the national career operational, reported Geo News.

Last week, the national carrier announced the “easing” of its financial challenges following the release of critical funds by the banks as a result of the Pakistan government’s support.

“The funds shall be used to clear long-standing dues of Aircraft and engine leases, spare support and handling payments at foreign stations. Restructuring is also on track,” Pakistan International Airlines said.

Earlier, the PIA grounded five out of its 13 leased aircraft with further prospect of grounding four additional planes due to the pending dues.

However, the PIA asked for an emergency bailout of Pakistani Rupees (PKR) 22.9 billion which was then rejected by the Economic Coordination Committee (ECC).

Moreover, the ECC also rejected the request made by PIA for deferment of the payments of Rs 1.3 billion per month, which the national carrier pays to FBR against FED and Rs 0.7 billion per month which PIA pays against the rising charges, Geo News reported.

Furthermore, the PIA also warned that Boeing and Airbus might suspend the supply of spare parts by mid-September.

In July the Federal Board of Revenue (FBR) froze the national carrier’s account on the basis of non-payment of more than Rs 2 billion in taxes, according to ARY News.

In January last year, the FBR froze 53 bank accounts of the PIA after it was found to be a tax defaulter of Rs 26 billion.

However, those bank accounts were restored after PIA assured them of early clearance of the taxes. (ANI)

ALSO READ: India Delivers Wheat, Disaster Aid to Afghanistan

Previous Story

WFP Calls For Urgent Funding in Afghanistan

Next Story

China Increases Presence Around Taiwan

Latest from -Top News

UN Slams Pakistan Over Minority Attacks

The minorities in Pakistan – including Ahmadiyya Muslims, Christians, Hindus, and Shia Muslims – continue to be neglected and increasingly subjected to targetted state-backed persecution….reports Asian Lite News Alarmed by rising violence

Cambodia-Thailand Agree to Truce

The border violence has claimed at least 35 lives and left more than 200 injured, based on figures from Thai and Cambodian officials….reports Asian Lite News Cambodia and Thailand have agreed to

Baloch Activist Thanks India, Slams Pakistan Terror

Mir Yar Baloch also appreciated the extraordinary courage and professionalism of the Indian Armed Forces, the “responsible and patriotic role” of the Indian media…reports Asian Lite News Prominent Baloch human rights activist

UK Warns China Over Taiwan Moves

Healey’s comments come amid rising global concerns over Chinese military activity around Taiwan and the growing Western focus on the Indo-Pacific region. British Defence Secretary John Healey has said the UK is

US Sticks to August 1 Tariff Deadline

US Commerce Secretary Howard Lutnick ruled out any possibility of an extension…reports Asian Lite News The US administration on Sunday said the August 1 deadline for imposing reciprocal tariffs remains unchanged and
Go toTop

Don't Miss

Worrisome August: Pakistan’s ‘Terrorism Boom’ Sets Exciting Record

As per data, an 83 per cent rise in August

Pakistan misses export target

Pakistan misses export target for 2024-25 despite modest growth, with