KARACHI: On Thursday, the Federal Board of Revenue (FBR) unblocked Pakistan International Airlines (PIA) bank accounts following the issue related to outstanding payments between the two national entities resolved.
The FBR had previously frozen PIA’s bank accounts due to unpaid taxes amid a crucial audit by the European Aviation Safety Agency (EASA). Subsequently, the accounts were unfrozen after PIA provided assurances to the tax collection body, pledging to settle all outstanding dues and submitting written confirmation of this commitment.
Notably, PIA is navigating through a profound financial crisis, sparking concerns about its ability to sustain air operations amidst escalating debts. A delegation from the European Commission and EASA is presently in Pakistan, raising optimism that the ban on PIA flights to the continent may be lifted.
The ban had been imposed following a plane crash in Karachi in May 2020 and a statement by the then aviation minister, Ghulam Sarwar Khan, in parliament. In his statement, Khan disclosed that many commercial pilots either held fraudulent licenses or had engaged in exam malpractices. Since imposing restrictions on the national airliner, PIA has incurred substantial losses.
