Sunday, October 1, 2023
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FBR Unfreezes the Bank Accounts of PIA

In light of the financial challenges and cash flow issues faced by Pakistan International Airlines (PIA), the Federal Board of Revenue (FBR) has temporarily lifted the freeze on PIA’s bank accounts. Currently, PIA pays a monthly sum of Rs. 1.3 billion to the FBR for Federal Excise Duty (FED). However, the outstanding tax amount owed by PIA exceeds Rs. 8 billion.

Cashflow constraints have made it difficult for PIA to meet its tax obligations, and officials from both the FBR and PIA are actively addressing this issue. In response to PIA’s failure to meet its commitments, the FBR recently placed a hold on its bank accounts, but these restrictions have now been lifted.

PIA’s financial situation remains precarious, as the airline is required to make an immediate payment of at least $100 million to several leasing firms for chartered aircraft, airport services, aircraft spares, and related expenses. The national flag carrier has largely relied on periodic government bailouts and recently received a commitment of support. However, the company’s liabilities have surged to Rs. 743 billion ($2.5 billion), surpassing its total assets by more than five times.

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