These flight cancellations are primarily due to PIA’s inability to settle its outstanding dues to Pakistan State Oil (PSO) for fuel supply, particularly for flights operating to and from Karachi airport.
The affected routes include flights from Karachi to Turbat, Gwadar, Quetta, Sukkur, and Multan. The situation has worsened for PIA, as it is at risk of grounding 15 planes due to unpaid dues amounting to approximately Rs 20 billion, as reported by Geo News. Furthermore, if these planes are grounded, over 30 flights may face suspension, according to sources.
The Ministry of Aviation acknowledges that the process of overhauling PIA is complex and will take about a year. During this period, it is crucial to ensure the continued operation of the national carrier.
Last week, PIA revealed that it had received critical funds from banks, thanks to the Pakistan government’s support, which would be used to settle long-standing dues related to aircraft and engine leases, spare parts support, and handling payments at foreign stations. The airline also mentioned that its restructuring efforts were on track.
Previously, PIA had grounded five out of its 13 leased aircraft, with the possibility of grounding an additional four planes due to outstanding dues. The airline had requested an emergency bailout of PKR 22.9 billion, which was subsequently rejected by the Economic Coordination Committee (ECC). The ECC also turned down PIA’s request to defer payments of Rs 1.3 billion per month to the Federal Board of Revenue (FBR) for Federal Excise Duty (FED) and Rs 0.7 billion per month for rising charges.
Additionally, PIA warned that Boeing and Airbus might suspend the supply of spare parts by mid-September. In July, the FBR froze PIA’s account due to non-payment of more than Rs 2 billion in taxes, which was later resolved after the airline assured the authorities of timely tax clearance.
These financial challenges underscore the significant difficulties faced by Pakistan International Airlines in managing its financial obligations and ensuring the uninterrupted operation of its flights.
