PIA has to pay Rs. 22 billion to PSO as outstanding dues
The outstanding dues of Pakistan State Oil (PSO) from the national
flag carrier, Pakistan International Airlines (PIA), have escalated to Rs. 21.7
billion.
The petroleum corporation has proposed implementing a Rs. 4 per
liter levy on Jet-A1 fuel to expedite the recovery process from PIA.
As of January 31, 2024, PIA's debt to PSO stands at Rs. 15.8
billion, inclusive of both principal and late surcharges, amounting to a total
of Rs. 21.7 billion.
PSO
stops supplying aircraft fuel to PIA once again
PSO had previously raised concerns regarding the transfer of PIA's
liabilities to a holding company as part of the airline's restructuring plan.
The proposal was dismissed by PSO, citing challenges as a publicly listed
company and potential adverse effects on its interests.
PSO recommended exploring alternative settlement options,
including cash payments, Pakistan Investment Bonds (PIBs), equity shares in the
new company, asset transfers, or the imposition of a levy on Jet-A1.
The PSO Board of Management has backed the company's stance in
refusing to transfer its receivables to the holding company and in seeking diverse
settlement avenues to recover outstanding dues from PIA.
PSO
restores fuel supply to PIA aircraft after advance payment
Recent reports indicate that PSO will seek a bailout of Rs. 70
billion from the federal government to prevent default.
PSO's liquidity position has reached a critical stage, with
outstanding receivables amounting to Rs. 852 billion. Sui Northern Gas
Pipelines Limited also owes Rs. 571 billion.
With total borrowings expected to climb to Rs. 511 billion, PSO is
on the brink of defaulting on international payments, necessitating urgent
measures such as delaying government deposits and deferred payments to
suppliers.
Source: Pro Pakistani