Pakistan International Airlines (PIA) has successfully resolved its issues with the Federal Board of Revenue (FBR), leading to the unblocking of its bank accounts, as reported by ARY News on Wednesday.
The resolution came after PIA provided assurances to the tax collection body that it would settle all outstanding dues and submitted a written commitment to that effect.
According to an FBR spokesperson, PIA has committed to paying Rs2.5 billion this month in accordance with the agreement reached between the two parties.
The FBR had initially blocked PIA’s bank accounts due to non-payment of taxes amounting to over Rs 8 billion. PIA had previously promised to pay Rs2 billion in dues related to Federal Excise Duty in August but failed to fulfill this commitment.
It’s worth noting that Pakistan International Airlines (PIA) has been grappling with a severe financial crisis, raising concerns about its ability to sustain its air operations amid mounting debts. This crisis led to the cancellation of several PIA flights due to a shortage of funds, particularly affecting domestic flights to and from Karachi, where the airline struggled to pay its bills to Pakistan State Oil (PSO) for fuel supply.