FBR ‘unblocks’ PIA’s bank accounts

National flag carrier’s accounts were frozen over non-payment of dues

KARACHI:

The bank accounts of the Pakistan International Airlines (PIA) were unblocked after matters between the national flag carrier and the Federal Board of Revenue (FBR) over non-payment of dues were settled, sources in the FBR said on Thursday.

However, the airline cannot make payments through these accounts, and can only deposit funds.

A day earlier, the revenue board had frozen PIA’s accounts, which according to sources had disturbed the latter’s flight schedule.

The airline’s management was in contact with the FBR for the unfreezing of the accounts.

Sources on Thursday maintained that issues between the revenue board and the management of the PIA had been resolved over the non-payment of dues, and that the national flag carrier’s bank accounts had been unblocked.

They further said that PIA owed more than Rs24 billion to the Pakistan State Oil (PSO) – company supplying fuel to the airline.

Read more: FBR freezes PIA’s accounts

Due to the blocking of accounts, the airline has not made any payment to the PSO during the last 48 hours. The last sum it had paid was of Rs156 million on July 25, which too was given after much delay.

The chief financial officer of the PIA had assured the PSO of making the payment on Thursday but the dues could not be cleared.

The national flag carrier will now only be able to make payment on Monday as banks are closed due to Muharram holidays.

When contacted, PIA spokesperson Abdullah Hafeez Khan denied the unblocking of the accounts, saying the issue would be discussed on Monday.

He stated that the flights operations continued as per the schedule and that no disturbance was expected in the airline’s activities due to the prevailing situation.

Last year, the airline’s 53 accounts were blocked over non-payment of dues, which were later restored on assurance of early payments.