If funds are not received, PIA will be locked out, debt of more than Rs 20 thousand crores

Pakistan International Airlines (PIA) canceled many domestic and international flights amid a major financial crisis. Flights taking off from Karachi airport were canceled after the national airline failed to pay Pakistan State Oil (PSO) for fuel supply. Pakistan-based media outlets reported that the canceled flights included Karachi-Turbat, Karachi-Gwadar, Karachi-Quetta, Karachi-Sukkur and Karachi-Multan. Earlier, it was reported that Pakistan International Airlines (PIA) is at risk of grounding 15 aircraft as it is yet to clear dues amounting to ₹20 billion.

Additionally, more than 30 flights are likely to be suspended if the planes are grounded, according to sources. As many as 15 aircraft may be grounded due to delay in timely payment of dues related to fuel, Federal Excise Duty (FED) and lease payments. The aviation ministry said overhauling PIA is a complex process and will take a year. However, it is important to keep the national career going during this period. Last week, the national carrier announced it was “easing” its financial challenges after banks released significant funds as a result of support from the Government of Pakistan.

Pakistan International Airlines said the funds would be used to clear long-pending dues of aircraft and engine leases, standby support and handling payments at foreign stations. Earlier, PIA had grounded five of its 13 leased aircraft due to pending dues, with the possibility of grounding four additional aircraft. However, PIA asked for an emergency bailout of 22.9 billion Pakistani rupees (PKR), which was rejected by the Economic Coordination Committee (ECC). Furthermore, the ECC also rejected the request made by PIA to defer the payment of ₹1.3 billion per month that the national carrier pays to the FBR against FED and ₹0.7 billion per month that PIA pays on rising charges. Pays against.