FBR restores PIA accounts

KARACHI: The Federal Board of Revenue (FBR) on Thursday restored the accounts of Pakistan International Airlines (PIA).

According to sources, issues between the FBR and PIA have been settled.

It should be noted that the FBR had frozen all bank accounts of the Pakistan International Airline (PIA) over non-payment of taxes, sources told Geo News Wednesday night.

In recent years, mismanagement of funds, a rise in operating costs and a surge in fuel prices have led to financial difficulties for the national carrier.

The PIA has also faced scrutiny over its compliance with international safety standards, leading to temporary bans and restrictions on Pakistani airlines in various countries.

The national flag carrier, in response, claimed that its flights continued uninterrupted despite the tax bureau freezing its accounts. However, sources told the Geo News that several domestic and international flights were either cancelled or faced delays.

The sources in the FBR said the PIA had not deposited the Federal Excise Duty of Rs4 billion, which it had collected through plane tickets. Once all the bank accounts were frozen, PIA faced difficulty paying for aircraft fuel as the sources said the Pakistan State Oil had refused to supply it.