PIA’s employees await August salaries

ISLAMABAD: Pakistan International Airlines (PIA) employees are still awaiting their August salaries due to the airline’s financial crisis. The national flag carrier is facing a severe financial crisis after the Federal Board of Revenue (FBR) froze its bank accounts over non-payment of more than Rs 8 billion in taxes.

The PIA spokesperson said the caretaker federal government has promised to disburse funds to the airline and the salaries of the employees would be disbursed in a week.

The FBR had frozen the accounts of PIA in August after the airline failed to pay Rs2 billion in dues under Federal Excise Duty.

The PIA spokesperson clarified that the bank account closure will not affect the airline’s flight operations.

Separately, amid worsening financial conditions, PIA fleet is feared to be reduced to 15 operational planes if it fails to get immediate and immense financial assistance from the government.

Read more: PIA’s financial crisis: fleet feared to shrink to 15 planes

Out of PIA’s 35 planes fleet, 20 aircraft are operational and the remaining 15 aircraft are grounded. Nine planes out of these, including two Boeing, four A320 and three ATR, have been acquired on lease. Two planes are also stuck in Jakarta due to the lack of agreement with the leasing company.

Out of the four grounded ATR aircraft, three ATR 72 planes are on lease. PIA wants to repair two aircraft and hand them over to Pakistan Navy. INP