PSO suspends fuel supply to PIA on shorter routes

No such measure taken for int’l flights or flights on longer domestic routes

KARACHI:

The Pakistan State Oil (PSO) has suspended the fuel supply to the Pakistan International Airlines (PIA) after its dues on the latter crossed Rs26.5 billion mark.

Sources in the state oil maintained that in the first phase, the fuel supply for domestic flights on shorter routes had been stopped whereas no such measure had been taken for flights on longer routes.

It was further noted that the credit lines of the national airlines had been exhausted, and as of October 10, the dues had crossed Rs26.5 billion mark.

Sources stated that the fuel supply to PIA for international flights continued as usual. They said that PSO was also facing severe financial crisis due to non-payment of dues.

Read PIA sell-off a foremost priority, WB told

On Wednesday, the cabinet approved a proposal for hiring the Consortium for Financial Advisory for the privatisation of the national flag carrier.

Earlier, Caretaker Privatisation Minister Fawad Hasan Fawad gave an in-depth review of the privatisation status of the highest lossmaking entities including the PIA.

“It has been decided that the PIA would be privatised as a clean entity by making it free from legacy loss,” Fawad said. “The Pakistan International Airline Company (PIAC) as a clean entity with only current core assets and current liabilities would be offered for privatisation,” he added.

The minister said that PIA’s legacy liabilities would be parked in a holding company. He added that the core assets that would be sold included national carrier’s aircraft, its routes, landing rights, core engineering and air service agreements.