PSO fuel supply has been stop to PIA over unpaid dues at 3 airports.
Due to suspension of fuel supply on Monday, 14 flights between Multan, Karachi, Sukkur, Islamabad and Gilgit were canceled. According to sources, PIA owes PSO Rs 650 million as per the scheduled schedule.
PIA has sought an additional loan of over Rs 7 billion from banks amid fears of partial or complete suspension of its flight operations as a result of the severe financial crisis.
According to the report, PIA has written a letter to the Aviation Division requesting an immediate loan of more than 7 billion rupees from the banks. The letter also stated that the Pakistan government’s guarantee includes an option for the airline to get a loan of Rs 7.5 billion.
The letter also highlighted that financial difficulties had led to the suspension of fuel supply to Jeddah and Dubai, and the state oil marketing company PSO had declined to provide fuel to the airline.
It also mentioned the possibility of the International Air Transport Association suspending its membership at any time, and the Federal Board of Revenue issued notices to the airline.
The letter sent by the General Manager Funds Management to the Deputy Director Division urged the Finance Ministry to intervene immediately and direct the banks to provide a loan of Rs 7.5 billion under government guarantee.
