Pakistan International Airlines (PIA) has failed to pay Rs. 30 billion in outstanding dues to Pakistan State Oil (PSO) despute getting sold to the Arif Habib-led consortium for Rs. 135 billion.
PSO had approached the federal government seeking the transfer of PIA’s Islamabad real estate to get paid for sending jet fuel supplies to the national carrier. Discussions were held between PSO and PIA on transferring the land to clear the dues. So far, the asset has not been handed over.
The total outstanding receivables from PIA currently stand at Rs. 30.15 billion, including the principal amount and late payment surcharge.
In a letter to the government, PSO mentioned the pending settlement of receivables and the non-transfer of PIA’s Islamabad property. The company recalled that PSO and PIA had reconciled their accounts on March 21, 2024.
Following a federal cabinet decision on February 5, 2024, PSO issued a consent letter on March 22, 2024, based on the understanding that PIA’s Islamabad real estate plot worth Rs. 15 billion would be transferred to PSO. It was also agreed that receivables amounting to Rs. 8.8 billion would be shifted to the books of PIA Holding Company.
In December 2025, PSO formally requested the privatization ministry to complete the transfer of the Islamabad real estate plot in its favour. The asset remains untransferred to date.