Liquidity Crisis
KARACHI: Facing serious cash flow problems, Pakistan International Airlines (PIA) has canceled several domestic and international flights.
A top official of the national flag carrier earlier informed that they fear suspending flight operations by today, September 15, if emergency funds are not provided.
On August 12, a shortage of funds and failure to pay Pakistan State Oil (PSO) for fuel supply resulted in the cancellation of numerous domestic flights to and from Karachi.
Today, according to the Jinnah International Airport schedule, PIA has canceled flights from Karachi to Bahawalpur (PK588 and PK589) and Karachi to Lahore (PK302 and PK303).
The Karachi to Islamabad flight (PK368) experiences a three-hour delay, and the Karachi to Lahore flight (PK304) faces an eight-and-a-half-hour delay. PIA cancels flights to and from Karachi and Rahim Yar Khan (PK582 and PK583), while the Karachi to Multan flight (PK330) and the Dubai flight (PK213) encounter a two-hour delay.
In addition, the flight from Islamabad to Karachi (PK301) is canceled, the Islamabad to Riyadh flight (PK753) is delayed by three hours, and the Lahore to Karachi flight (PK305) is delayed by two-and-a-half hours due to liquidity crisis.
PIA’s Financial Crisis
On September 7, PIA grounded five of its 13 leased aircraft and anticipated grounding four more due to the ongoing financial crisis.
The Economic Coordination Committee (ECC) rejected PIA’s request for an emergency bailout of Rs22.9 billion and the deferment of monthly payments of Rs1.3 billion to FBR for FED and Rs0.7 billion to CAA for embarking charges.
PIA also warned of potential suspensions in spare parts supply by Boeing and Airbus by mid-September.
Last month, the Federal Board of Revenue of Pakistan (FBR) froze 13 PIA bank accounts due to non-payment of Rs8 billion in FED.
