PIA has outstanding dues of Rs28.88 billion to Pakistan State Oil (PSO)
Pakistan International Airlines (PIA) has accumulated a staggering Rs28.88
billion debt to Pakistan State Oil (PSO) for jet fuel supplies, including
Rs14.29 billion in principal and Rs14.59 billion in late payment surcharges, as
of February 28, 2025. This was revealed by Energy Minister Ali Pervaiz Malik in
a written response to the National Assembly.
PIA’s Financial Struggles
The minister stated that PIA’s ongoing financial crisis and liquidity issues
have prevented it from clearing its dues. PSO is actively pursuing payment, but
the airline’s weak financial standing continues to hinder repayment efforts.
Read More PSO
restores fuel supply to PIA aircraft after advance payment
The government has long sought to privatize the national flag carrier, but
its massive liabilities and operational inefficiencies have complicated the
process. PIA’s total liabilities currently stand at Rs45 billion, including:
- Rs26
billion in unpaid taxes to the Federal Board of Revenue (FBR)
- Rs10
billion owed to the Civil Aviation Authority (CAA)
- Additional
pension liabilities
Privatization Plans and IMF
Commitments
To attract investors, the government is working on a strategy to reduce
PIA’s financial burden. Authorities have assured the International Monetary
Fund (IMF) that PIA’s privatization will be finalized by July 2025. As part of
this commitment, an Expression of Interest (EOI) for the airline’s sale is set
to be issued by the end of March 2025.
Investor interest remains a key challenge. A previous privatization attempt
failed when the sole bidder, a real estate developer, offered just Rs10
billion—far below the Rs85 billion minimum valuation.
To improve prospects, the IMF has agreed to relax certain conditions,
including waiving the 18% sales tax on aircraft leases and restructuring PIA’s
Rs45 billion liabilities.
Read More Collective
action urged for sustainable aviation in Pakistan
With the privatization deadline approaching, the government faces mounting
pressure to resolve PIA’s financial woes and secure a viable buyer.
Source: Pakistan Today