At last relief for the cash-strapped Pakistan International Airlines as the Federal Board of Revenue on Wednesday restored all 26 bank accounts of the airline following written assurance given by the national flag carrier to the bureau that it would make all payments this month.
According to the FBR, out of total Rs8 billion that the PIA has to pay, it will pay Rs2.5 billion in the ongoing month. After its accounts were frozen, the PIA had to face serious financial issues. The airline had to delay the payment of salaries to its staff for the month of August. On the other hand, spokesman for the national flag carrier also confirmed that the accounts had been restored.
Two weeks ago, it was reported that the FBR had decided to freeze 26 bank accounts of the Pakistan International Airlines (PIA) for non-payment of federal excise duty. According to the FBR, the national carrier owed Rs8.84 billion federal excise duty and had promised to pay Rs2 billion this month, which could not be fulfilled as yet.
The FBR blamed that PIA’s senior management had used the funds by opening separate accounts and failed to deposit the federal excise duty, collected from passengers in the national treasury. The FBR said they had also moved a complaint in the Federal Investigation Agency under anti-money laundering act against the PIA management for utilizing the FED funds.
Meanwhile, a PIA spokesman has clarified that the freezing of bank accounts will not affect its flights operation.
