The Federal Board of Revenue (FBR) in Pakistan withdrew its orders to freeze the Pakistan International Airlines (PIA) bank accounts, clarifying that this action does not prevent the pursuit of recovery proceedings.
The FBR had frozen 28 PIA accounts amid the airline’s financial crisis. The Pakistan State Oil had also threatened to halt oil supply to PIA due to outstanding dues.
The withdrawal of the freeze comes while a team from the European Union’s Aviation Safety Agency (EASA) is in Pakistan to assess flight safety issues. EASA had previously barred PIA from operating flights to Europe after a plane crash in Karachi in 2020, following claims by the former aviation minister that 40% of Pakistani pilots had questionable qualifications.
The FBR’s move to unfreeze the accounts is accompanied by the acknowledgment that recovery proceedings under Section 14(3) of the Federal Excise Act, 2005, could still be pursued. This section relates to the recovery of unpaid duty or erroneously refunded duty.
As PIA faces financial challenges, the government has announced plans for privatization and outsourcing of airport operations. The airline’s operations recently faced disruptions when the Pakistan State Oil cut fuel supply over unpaid dues, resulting in the cancellation of over 500 flights in two weeks. The government is now intensifying decisions regarding PIA’s future, including divestment processes.
Pakistan International Airlines’ Accounts Frozen Amid European Union Safety Review
Earlier, the Federal Board of Revenue (FBR) took the decision to freeze the accounts of Pakistan International Airlines (PIA), a move that coincided with the presence of a team from the European Union’s Aviation Safety Agency (EASA) in Pakistan.
In another related development, Pakistan State Oil issued a warning, stating that it would cease oil supply to the airline unless outstanding dues were settled by Thursday.
A spokesperson for Pakistan International Airlines expressed disappointment over the timing of the account freeze, highlighting that the airline was currently hosting a delegation from EASA tasked with assessing flight safety issues.
The EASA delegation, comprising four members, conducted an inspection of PIA’s operations, apron, engineering area, and flight safety tools in Karachi on Wednesday. Prior to this, the team had reviewed measures taken by the Civil Aviation Authority concerning pilot licenses and airworthiness on Tuesday.
