FBR Unfreezes PIA’s Bank Accounts In Pakistan
In response to the dire financial situation and cashflow issues faced by Pakistan International Airlines (PIA), the Federal Board of Revenue (FBR) has taken the step of de-attaching PIA’s previously frozen bank accounts. The FBR had initially attached these accounts in light of the substantial outstanding tax debt owed by PIA, which amounted to over Rs. 8 billion.
The situation had become increasingly challenging for PIA, as it struggled to meet its financial commitments, including monthly payments of Rs. 1.3 billion under the Federal Excise Duty (FED) category. These recent developments are a result of collaborative efforts between FBR and PIA officials, who have been working together to address the airline’s financial woes.
The financial turmoil at PIA has intensified, with the airline facing an urgent need to pay approximately $100 million to several leasing firms, in addition to unresolved airport charges, unpaid salaries, and other financial obligations. This predicament coincides with Pakistan’s broader economic crisis, which nearly led to a sovereign default.
Pakistan managed to secure a $3 billion loan from the International Monetary Fund (IMF) in July, but the national carrier, PIA, has relied on consistent government bailouts to stay afloat. Despite these challenges, there has been a recent commitment of support for PIA, as the airline grapples with its financial difficulties amid the backdrop of Pakistan’s economic instability.