PIA cancels several flights amid financial crunch
KARACHI: Pakistan International Airlines (PIA) on Thursday cancelled several domestic and international flights amid a major financial crunch, ARY News reported citing sources.
Sources privy to the development told ARY News that several domestic flights to and from Karachi were cancelled as the national flag carrier failed to pay Pakistan State Oil (PSO) for fuel supply.
The cancelled flights include Karachi-Turbat, Karachi-Gwadar, Karachi-Quetta, Karachi-Sukkur and Karachi-Multan.
It is pertinent to mention here that Pakistan International Airlines (PIA) is grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts.
It emerged Wednesday that the bank accounts of Pakistan International Airlines (PIA) were unblocked after matters between the national flag carrier and the Federal Board of Revenue (FBR) over non-payment of dues were settled.
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The bank accounts were unblocked after the national flag carrier assured the tax collection body of clearing all pending dues and submitted written assurance.
According to FBR spokesperson, PIA will pay Rs2.5bn this month as per the agreement.
The previous Pakistani administration of Prime Minister Shehbaz Sharif said it wanted to privatize the airline, while the caretaker government of the country has instructed relevant authorities last week to finalize its restructuring plan.