FBR unfreezes PIA accounts. The Federal Board of Revenue (FBR) in Pakistan decided to unfreeze the bank accounts of Pakistan International Airlines (PIA) on Thursday, successfully resolving the issue surrounding the non-payment of substantial dues.
The move, which initially raised eyebrows as it coincided with a safety audit conducted by the European Union Aviation Safety Agency (EASA), marks a significant step in addressing the financial challenges faced by the national carrier.
A formal notification from the FBR’s deputy commissioner for Inland Revenue officially confirmed the withdrawal of the earlier notice, leading to the immediate detachment of PIA’s bank accounts.
It is noteworthy that the FBR underscored that this action in no way precludes the department from pursuing “recovery proceedings” as per the applicable laws.
PIA’s spokesperson, Abdullah Khan, offered confirmation of the nationwide unfreezing of the airline’s accounts, highlighting ongoing and constructive communication between PIA and the FBR’s Large Tax Unit in their joint efforts to navigate the issue.
Beyond the tax-related hurdles, PIA has encountered significant challenges in managing its fuel supply. Pakistan State Oil recently issued a stern warning, threatening to halt the airline’s oil supply if outstanding dues were not settled promptly.
As FBR unfreezes PIA accounts, this is not the first instance of PIA grappling with fuel supply issues, as a few weeks prior, Pakistan State Oil had temporarily suspended fuel supply, resulting in the disruption of over 300 flights, both domestic and international.
Compounding the challenges, the federal government has made the strategic decision to privatize PIA, a move prompted by the airline’s sustained financial struggles.
To spearhead this privatization initiative, a consultant has been engaged. Fawad Hassan Fawad, the Privatization Minister, has been a vocal advocate for privatization, citing the multifaceted challenges confronting the national carrier as a driving force behind this significant decision.
