PSO restores fuel supply to PIA aircraft after advance payment
The Pakistan State Oil (PSO) has resumed the supply of fuel
to 39 Pakistan International Airlines (PIA) aircraft following the receipt of
an advance payment of Rs220 million ($789,804) from the airline. A PSO
spokesperson confirmed this development on Saturday, as reported.
Earlier in the week, PIA had announced the cancellation of
14 international and domestic flights due to fuel shortages, caused by the
cancellation of supply by the state-owned PSO over unpaid dues. The national
carrier, currently slated for privatization by the government, has accumulated
significant losses and unpaid dues, amounting to hundreds of billions of
rupees. The government had declined the airline's request for Rs23 billion ($76
million) in operational support, prompting Prime Minister Anwaar-ul-Haq Kakar
to initiate a restructuring plan aimed at stabilizing the airline's finances.
PSO’s
refusal to supply fuel forces PIA to cancel 14 flights
Naila Erum, a spokesperson for PSO, confirmed the receipt of
"PKR 220 million for Saturday and Sunday's refueling" from PIA, and a
list of 39 flights scheduled for October 21, 2023. In addition to fuel, the
airline requires Rs100 million daily for other financial needs such as parts
repair and aircraft maintenance. PSO had terminated the fuel supply due to
unpaid dues of Rs1.4 billion.
As of October 16, 2023, the total outstanding owed by PIA to
PSO stood at Rs26.825 billion, which includes Rs14.893 billion as the principal
amount and Rs11.932 billion in Late Payment Surcharges (LPS). According to
Erum, "the payable amount against current supplies as of October 17 was
Rs2,072 million." PIA is grappling with a fuel crisis as it strives to
resume flights to the United Kingdom within the next two months.
Source: The News