FBR unfreezes accounts of cash-strapped PIA

The Federal Board of Revenue (FBR) on Wednesday unfreezes the accounts of the loss-making Pakistan International Airline (PIA).

PIA is to make FBR a massive payment of Rupees 2.5 billion out of the pending 8 billion amount.

A week ago, FBR had frozen all bank accounts of PIA for non-payment of federal excise duty.

Following which, the airline started facing severe financial difficulties including the delay in employee salaries.

PIA is currently facing a severe financial crisis, resulting in the cancellation of several domestic and international flights.

The airline’s inability to settle dues with Pakistan State Oil (PSO) for fuel supply has led to this precarious situation.

The country’s national flag carrier, grappling with a major debt burden lead to delay in flights from Karachi-Muscat, Karachi to Faisalabad, Islamabad and Lahore, and Karachi to Turbat, Bahawalpur.

Amid the haphazard situation, Pakistan International Airlines (PIA) has approached the federal government for quick funds.

PIA has resorted to ground several aircraft as it struggles to secure funds to maintain its operations for the next few months, during which time its core functions and non-core assets are expected to be put up for sale.