Financial Hurdles
KARACHI: The Federal Board of Revenue (FBR) took action on Thursday by freezing 13 bank accounts of Pakistan International Airlines (PIA) due to the non-payment of Rs8 billion in Federal Excise Duty (FED).
FBR officials stated that they will also freeze the national carrier’s bank accounts associated with the International Air Transport Association (IATA).
FBR officials announced their decision to file a First Information Report (FIR) against PIA officials. Despite restoring the accounts last month, they did not submit the FED.
A PIA spokesperson mentioned that the freezing of the national carrier’s bank accounts would not impact its flight operations and stated, “There is contact at the government level. PIA’s accounts would be restored soon.”
It is important to note that on July 27, the FBR froze all of PIA’s bank accounts over non-payment of taxes, but they restored them on July 28 following the resolution of issues between the FBR and PIA.
In recent years, financial hurdles have arisen for the national carrier due to fund mismanagement, rising operational costs, and increased fuel prices.
PIA has also faced scrutiny regarding its compliance with international safety standards, resulting in temporary bans and restrictions on Pakistani airlines in several countries.
Sources at the FBR revealed that PIA had not deposited the Rs4 billion FED it had collected through plane tickets. The airline struggled to pay for fuel as PSO refused to supply it when their accounts froze.
