FBR freezes PIA accounts, leading to 'cancelled, delayed' flights

• FBR sources say PIA hasn't paid taxes worth Rs4 billion.
• National carrier also fails to procure fuel for several flights.
• "All aerial operations continued [despite hurdle]," PIA says.

KARACHI: The Federal Board of Revenue (FBR) has frozen all bank accounts of the Pakistan International Airline (PIA) over non-payment of taxes, sources told Geo News Wednesday night.

In recent years, mismanagement of funds, a rise in operating costs, and a surge in fuel prices have led to financial difficulties for the national carrier.

The PIA has also faced scrutiny over its compliance with international safety standards, leading to temporary bans and restrictions on Pakistani airlines in various countries.

The national flag carrier, in response, claimed that its flights continued uninterrupted despite the tax bureau freezing its accounts.

Sources told Geo News otherwise, saying that several domestic and international flights were either cancelled or faced delays.

The sources in the FBR said the PIA had not despited Federal Excise Duty worth Rs4 billion, which it had collected through plane tickers.

Once all the bank accounts were frozen, PIA faced difficulty paying for its planes' fuel as the sources said that the Pakistan State Oil (PSO) had refused to supply the same.

As the national carrier wasn't able to secure fuel on time, sources said several flights faced either cancellation or delay:

• PK-370 — Karachi to Islamabad
• PK-306 — Karachi to Lahore
• PK-350 — Karachi to Peshawar
• PK-310 — Karachi to Quetta
• PK-302 — Karachi to Bahawalpur, Lahore
• PK-309 — Islamabad to Karachi
• PK-330 — Karachi to Islamabad
• PK-739 — Multan to Jeddah
• Karachi to Rahim Yar Khan

In response, PIA's spokesperson told Geo News that the airline had contacted the government to persuade the tax body to unfreeze its accounts.

"All aerial operations continued [despite the hurdle]," the spokesperson said.