PSO warns of fuel supply cut if PIA fails to pay Rs1.50bn. Pakistan State Oil (PSO) has urgently sought a payment of Rs1.50 billion from Pakistan International Airlines (PIA) for fuel purchased, setting a Friday deadline and cautioning of potential supply disruptions if the payment is not met.
This request comes in the wake of the Federal Board of Revenue (FBR) initially instructing the freezing of PIA’s accounts to recover an outstanding tax amount of Rs2.76 billion. However, these directives were later rescinded, providing temporary relief to the national carrier.
A spokesperson for PIA stated that the FBR has since unfrozen the airline’s accounts nationwide, and ongoing discussions between the national carrier and FBR’s Large Tax Unit are underway to address the outstanding tax issue.
Despite this reprieve from tax-related challenges, PSO is now pressing PIA for prompt payment concerning the fuel supply.
Sources indicate that PSO had previously extended additional credit to PIA during its financial turmoil.
However, alleging a breach of commitment on PIA’s part, PSO is contemplating the possibility of curtailing fuel supplies if the requested payment is not fulfilled.
It has been noted that, although PIA presented a payment plan on October 27, 2023, covering fuel expenses for November, it failed to encompass the outstanding amount for current supplies, which had accrued to Rs2,166 million by October 31, 2023.
Despite a payment shortfall of Rs1,106 million in PIA’s November plan, PSO continued to provide fuel.
The latest demand from PSO insists that PIA disburse Rs1,500 million by the impending Friday deadline to ensure the uninterrupted supply of jet fuel.
As PSO warns of fuel supply cut if PIA fails to pay Rs1.50bn, the situation remains dynamic as both entities navigate financial intricacies and attempt to reach a resolution.
