[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan International Airlines (PIA) is encountering financial difficulties due to the Federal Board of Revenue (FBR) taking action against the non-payment of taxes, totaling over Rs2 billion. Last year, 53 of the airline’s bank accounts were frozen as a response to the outstanding tax dues.
Nevertheless, there is optimism for resolution as the PIA administration has assured that the taxes will be promptly settled, and historically, the bank accounts were restored after such commitments.
Apart from the tax-related problems, PIA is also grappling with scheduled flight challenges. Pakistan State Oil (PSO) has refused to supply fuel to three PIA aircraft, affecting PK-309 (Islamabad-Karachi), PK-330 (Karachi-Multan), and PK-739 (Multan-Jeddah) flights.
The PIA spokesperson confirmed the account freeze and informed that they are in communication with the FBR at the government level to resolve the issue and reinstate the accounts. Despite the frozen accounts, the spokesperson assured that flight operations will continue unaffected.
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The financial hardships have also impacted decisions regarding employee pay raises, with the board of directors unable to reach a consensus due to the prevailing financial challenges.
To address the overall situation, the board of directors has approved the reorganization of PIA after a briefing. One of the proposed measures is establishing a holding company to manage properties and losses. A comprehensive plan for reorganizing the national entity is in progress based on the board’s directives.
Despite these challenges, there is a glimmer of hope for PIA, as efforts are being made to restore direct flight operations to Europe, the United Kingdom (UK), and the United States (US). The European Union Aviation Safety Agency (EASA) is scheduled to conduct a physical audit in Pakistan in September, and preparations have been made in anticipation of the EASA team’s visit.[/vc_column_text][/vc_column][/vc_row]
