Tuesday, June 18, 2024

FBR Unfreezes Pakistan International Airline (PIA) Bank Accounts

The bank accounts of Pakistan International Airlines (PIA) have been unfrozen following the resolution of a longstanding issue with the Federal Board of Revenue (FBR) regarding unpaid dues.

The accounts were released after PIA provided a written commitment to settle all outstanding dues and assured the tax collection authority of their intent to do so. Under the terms of the agreement, PIA is set to make a payment of Rs2.5 billion this month, as confirmed by an FBR spokesperson.

Initially, the FBR had frozen PIA’s bank accounts due to unpaid taxes amounting to 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 fulfill this obligation.

It’s important to note that PIA has been grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts. Recent flight cancellations, particularly affecting domestic routes to and from Karachi, highlight the airline’s financial challenges, notably its inability to settle outstanding bills with Pakistan State Oil (PSO) for fuel supply.

The resolution of the FBR issue marks a step towards stabilizing PIA’s financial situation.

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