The Federal Board of Revenue (FBR) has unfrozen the bank accounts of Pakistan International Airlines (PIA). The tax dispute between the two parties has been resolved, ending a concerning financial ordeal for the national carrier.
PIA has faced financial difficulties in recent years due to mismanagement of funds, rising operating costs, and soaring fuel prices. These factors have put a strain on the national carrier’s finances, making it hard for them to meet their tax obligations.
Apart from financial challenges, PIA has also faced scrutiny over its compliance with international safety standards. This has resulted in temporary bans and restrictions on Pakistani airlines in different countries. Despite the tax dispute, PIA claimed its flights were unaffected, but reports revealed that some domestic and international flights experienced cancellations or delays.
The root cause of the account freeze was PIA’s failure to deposit Rs. 4 billion in Federal Excise Duty, which the airline had collected from plane ticket sales. With their bank accounts frozen, PIA struggled to pay for aircraft fuel as Pakistan State Oil refused to supply them.
However, after settling their dispute, the FBR has restored PIA’s bank accounts, providing relief to the airline and its passengers. Moving forward, it will be crucial for PIA to implement effective financial management strategies and maintain compliance with international safety standards to restore confidence in its services.
