FBR freezes PIA accounts

KARACHI: The Federal Board of Revenue (FBR) has frozen all bank accounts of the Pakistan International Airline (PIA) over non-payment of taxes.

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.

But it has been learnt that several domestic and international flights were either cancelled or faced delays.

The sources in the FBR said the PIA had not paid taxes despite earning Federal Excise Duty worth Rs4 billion, which it had collected through plane tickers.

Once all the bank accounts were frozen, PIA faced difficulty paying for its planes’ fuel as the sources said that the Pakistan State Oil (PSO) had refused to supply the same.

The national flag carrier owes more than Rs2 billion on account of taxes for the past several months to the government.

The airline’s 53 accounts were frozen last year also over non-payment of dues, which were later restored on assurance of early payments.

In response, PIA’s spokesperson told Geo News that the airline had contacted the government to persuade the tax body to unfreeze its accounts.

“All aerial operations continued [despite the hurdle],” the spokesperson said.

“India would be well-advised to faithfully implement these resolutions, rather than entertaining any notions of grandeur,” the spokesperson further said.

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