KARACHI: On Thursday, the Federal Board of Revenue (FBR) resolved issues regarding outstanding dues with Pakistan International Airlines (PIA), leading to the unblocking of the airline's bank accounts.
The FBR had initially frozen PIA's accounts due to unpaid taxes amid a critical audit by the European Aviation Safety Agency (EASA).
Following assurances from the national carrier to settle all pending payments and providing written commitments, the FBR lifted the block on PIA's bank accounts. PIA's financial struggles have been exacerbated by mounting debts, sparking concerns about its operational sustainability.
Presently, a delegation from the European Commission and EASA is in Pakistan, raising optimism for the potential lifting of the ban imposed on PIA flights to Europe. This ban stemmed from the May 2020 plane crash in Karachi and revelations made by the former aviation minister, Ghulam Sarwar Khan, in parliament. He disclosed the presence of numerous commercial pilots with fraudulent licenses or who had engaged in exam malpractices.
Since the imposition of restrictions on the national airline, PIA has faced substantial financial losses, underscoring the gravity of its situation.
