FBR unfreezes PIA bank accounts

KARACHI: The bank accounts of Pakistan International Airlines (PIA) were unblocked after matters between the national flag carrier and the Federal Board of Revenue (FBR) over non-payment of dues were settled, citing sources ARY News reported on Wednesday.

The bank accounts were unblocked after the national flag carrier assured the tax collection body of clearing all pending dues and submitted written assurance.

According to FBR spokesperson, PIA will pay Rs2.5bn this month as per the agreement.

The Federal Board of Revenue (FBR) blocked bank accounts of Pakistan International Airlines (PIA) over non-payment of due taxes worth more than Rs 8 billion.

The FBR said the PIA had promised to pay Rs2 billion in dues under Federal Excise Duty in August, but it failed to keep its promise.

It is pertinent to mention here that Pakistan International Airlines (PIA) is grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts.

Yesterday, scores of Pakistan International Airlines (PIA) flights were cancelled due shortage of funds. Sources privy to the development told ARY News that several domestic flights to and from Karachi were cancelled as the national flag carrier failed to pay Pakistan State Oil (PSO) for fuel supply.