Pakistan: Pakistan International Airlines cancels flights over non-payment of dues to fuel supplier

ISLAMABAD: Pakistan Worldwide Airline (PIA) flights have been severely affected as Pakistan State Oil (PSO) stopped gasoline provide to the nationwide provider over non-payment of dues to the corporate, Geo Information reported on Monday.
In consequence, the Airline cancelled 26 flights from Karachi, Lahore, Islamabad, Quetta, Bahawalpur, Multan, Gwadar, and different cities in Pakistan.
In response to Geo Information, a PIA spokesperson knowledgeable that the affected passengers have been supplied with various flights.
In the meantime, solely three flights will take off from Karachi in the present day as per the gasoline adjustment plan of the PIA.
On October 21, PIA paid PKR220 million (approx. 789000 USD) to the Pakistan State Oil (PSO) for a two-day gasoline provide.
As per ARY Information, PIA disbursed the gasoline fee price PKR 220 million to the PSO for October 21 and October 22.
The PIA spokesperson mentioned that the airline has paid Rs500 million to date to the PSO for the availability of gasoline, including that the nationwide flag provider is making funds to PSO each day.
PIA is presently buying gasoline for worthwhile routes together with Saudi Arabia, Canada, China, Kaula Lumpur and others.
Earlier, Pakistan Worldwide Airways (PIA) confronted recent turbulence as its home flight operations have been disrupted on account of non-payment of dues, main to an entire halt within the provide of aviation turbine gasoline to the provider, the Daybreak reported.
The Pakistan-based each day reported additional, citing official sources, that Pakistan State Oil (PSO) halted the provision of aviation gasoline to the nationwide provider on Tuesday.
On October 17, in a direct fallout of the identical, the airline cancelled 14 home flights whereas 4 others have been delayed by a number of hours, the report added.
The cancelled flights included two from Islamabad to Gilgit, one from Islamabad to Quetta, one from Karachi to Sukkur, one from Islamabad to Multan and one other from Karachi to Faisalabad, Daybreak reported.
In the meantime, PIA had requested an emergency bailout of Pakistani Rupees (PKR) 22.9 billion, which was rejected by the Financial Coordination Committee (ECC).
The ECC additionally turned down a request by the PIA for deferment of the fee of Rs 1.3 billion monthly, which the nationwide provider pays to FBR in opposition to FED and Rs 0.7 billion monthly which it pays in opposition to the rising prices, Geo Information reported.
The PIA additionally warned that Boeing and Airbus would possibly droop the provision of spare elements for its fleet by mid-September. In July, the Federal Board of Income (FBR) froze the nationwide provider’s account on the premise of non-payment of greater than Rs 2 billion in taxes, in line with ARY Information.
In January final yr, the FBR froze 53 financial institution accounts of the PIA after it was discovered to have defaulted on taxes price PKR 26 billion. Nonetheless, these financial institution accounts have been restored after PIA assured them of early clearance of the taxes.

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