PIA planes grounded at middle eastern airports amid financial woes

ISLAMABAD: Pakistan International Airlines (PIA) recently encountered flight disruptions due to a shortage of aircraft, as operational planes remained stranded at Middle Eastern airports.

PIA’s aircraft was grounded at Dammam airport, with four others detained in Dubai owing to unpaid fuel bills. However, these planes were permitted to depart after PIA provided a written assurance to settle the debt.

The International Air Transport Association (IATA) temporarily suspended its services to Pakistan International Airlines (PIA). The matter was resolved following PIA’s payment of a $3.5 million fine.

In a related development, several PIA flights were canceled due to financial difficulties. PIA’s inability to meet fuel bills owed to Pakistan State Oil (PSO) resulted in the cancellation of numerous domestic flights, both to and from Karachi.

Affected routes included Karachi-Muscat, as well as various domestic routes such as Karachi to Faisalabad, Islamabad, Lahore, and others.

Furthermore, concerns are growing that PIA may be forced to ground additional aircraft if financial challenges persist. Reports suggest that 15 more planes could be grounded within two days if the outstanding amount remains unpaid, potentially totaling over 30 grounded planes.

PIA’s employees await August salaries

FBR unfreezes PIA accounts

Meanwhile, Pakistan International Airlines’ bank accounts have been unblocked following the resolution of disputes with the Federal Board of Revenue (FBR) over unpaid dues.

The bank accounts were reinstated after PIA provided written assurances and guaranteed the clearance of all pending dues, as per the agreement. According to an FBR spokesperson, PIA will pay Rs2.5 billion this month in accordance with the terms.

The Federal Board of Revenue (FBR) had blocked PIA’s bank accounts due to unpaid taxes exceeding Rs 8 billion. PIA had previously pledged to pay Rs2 billion in dues under Federal Excise Duty in August but failed to fulfill its commitment.

These developments highlight Pakistan International Airlines (PIA)’s severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts.