PIA bank accounts frozen again over non-payment of FED

National carrier’s accounts associated with IATA will be frozen as well, says FBR officials

KARACHI: The Federal Board of Revenue (FBR) has frozen the bank accounts of the Pakistan International Airlines (PIA) due to the non-payment of Rs 8 billion in Federal Excise Duty (FED).

According to officials, the national carrier’s 13 bank accounts have been frozen.

They said that the PIA accounts associated with the International Air Transport Association (IATA) would also be frozen.

“A decision has been made to register a first information report (FIR) against PIA officials for not submitting the FED,” said the FBR officials. “The FED was not submitted despite the accounts being restored last month.”

According to a PIA spokesperson, the freezing of the national carrier’s bank accounts would not affect its flight operations.

“There is contact at the government level. PIA’s accounts would be restored soon,” the spokesperson added.

It should be noted that on July 27, the FBR had frozen all bank accounts of the PIA over non-payment of taxes, sources had told Geo News.

Subsequently, on July 28, the accounts were restored following the settlement of issues between the FBR and PIA, according to sources.

In recent years, mismanagement of funds, a rise in operating costs and a surge in fuel prices have led to financial difficulties for the national carrier. The PIA also faces scrutiny over its compliance with international safety standards, leading to temporary bans and restrictions on Pakistani airlines in various countries. – News Agencies / Web Desk