PSO Threatens to Cut Fuel Supply If PIA Fails to Pay Rs. 1.5 Billion Pending Dues

Pakistan State Oil (PSO) has threatened to suspend fuel supply if Pakistan International Airlines (PIA) doesn’t pay Rs. 1.50 billion in delivery charges by Friday (today). The warning comes after the Federal Board of Revenue (FBR) earlier issued orders for the attachment of PIA’s bank accounts to recover taxes to the tune of Rs. 2.76 billion. However, on Thursday, the FBR withdrew its decision. While the FBR eventually changed its decision, PIA has only until today to pay PSO or face losing essential fuel supply. PSO backed PIA despite its recent financial difficulties of late by extending additional credit but reportedly has no choice but to cut supply in case of non-payment of pending dues. Details suggest PIA was unable to clear dues for November 2023, but even then PSO maintained supply. An amount of Rs. 5 billion was due in November, however, PIA only paid Rs. 3.91 billion of the pending amount, resulting in a Rs. 1.1 billion gap. PSO has demanded PIA to pay Rs. 1.5 billion by Friday for uninterrupted fuel supply.