The Federal Board of Revenue (FBR) has initiated action against Pakistan International Airlines (PIA) for failing to pay taxes totalling more than Rs 2 billion, causing the airline to suffer a financial setback. In response to the unpaid tax debt, the FBR also had 53 of the national carrier’s bank accounts frozen the previous year.
The PIA management has promised to quickly clear the taxes, so there is still a chance of a settlement. Previously, the bank accounts had been reinstated following these types of commitments.
Along with problems with taxes, the PIA is having issues with its routine flights. The PK-309 (Islamabad-Karachi), PK-330 (Karachi-Multan), and PK-739 (Multan-Jeddah) flights are all affected because the Pakistan State Oil (PSO) has declined to provide fuel for three PIA planes.
The Spokesperson from PIA acknowledged that the accounts had been frozen and said that they were currently in contact with the FBR at the federal level to address the situation and unfreeze the accounts. The spokesperson assured customers that flight operations won’t be hampered regardless of the account freeze.
The choice of whether to give its employees pay raises has also been impacted by PIA’s financial struggles. Due to the current economic difficulties, the company’s board has been struggling to make a decision on this issue.
The reorganisation of PIA was approved by the board of directors following a briefing on dealing with the overall situation of the airline. The creation of a holding company to manage the properties and losses is one of the suggested measures. In accordance with the board’s instructions, a detailed plan for the reorganisation of the national entity is being developed.
The restoration of direct flight operations to Europe, the United Kingdom (UK), and the United States (US) is good news for PIA despite these difficulties. In September, Pakistan will host a physical audit by the European Union Aviation Safety Agency (EASA), for which preparations have been made by the government.
