Cash-starved PSO suspends oil supply to PIA

PSO spokesperson says national carrier owes Rs12 billion to the oil company

KARACHI: Cash-starved Pakistan State Oil (PSO) on Thursday suspended oil supply to Pakistan International Airlines (PIA) for nonpayment of dues, Express News reported.

Explaining the move that may disrupt flight operations, PSO spokesperson said the national carrier owes Rs12 billion to the oil company.

PSO had earlier pointed out that the airline so far failed to release money despite repeated requests and assurances from them, which was a clear breach of agreement.

PIA is required to make payment within seven days of oil delivery according to the aviation fuel supply agreement signed between the two companies in 2002.