FBR freezes PIA bank accounts over unpaid taxes
Pakistan
FBR and PIA are at loggerheads since July
KARACHI (Web Desk) - The Federal Board of Revenue (FBR) has taken action against Pakistan International Airlines (PIA) by freezing 13 of its bank accounts due to the non-payment of Rs8 billion in Federal Excise Duty (FED).
The FBR also stated that the national carrier's bank accounts associated with the International Air Transport Association (IATA) would be frozen as well.
The FBR officials announced their decision to register a First Information Report (FIR) against PIA officials for their failure to submit the FED, despite the accounts being restored last month.
However, PIA's spokesperson has assured that the freezing of the bank accounts will not affect the airline's flight operations as the government is in contact and the accounts will be restored soon.
It is worth mentioning that on July 27, the FBR had frozen all bank accounts of PIA due to non-payment of taxes, but the accounts were restored the next day following the resolution of issues between the FBR and PIA.
The national carrier has been facing financial difficulties due to mismanagement of funds, increasing operating costs, and rising fuel prices.
Additionally, PIA has been under scrutiny for compliance with international safety standards, resulting in temporary bans and restrictions on Pakistani airlines in various countries.
Last time when PIA's accounts were frozen, it also faced difficulties in paying for fuel as the Pakistan State Oil (PSO) refused to supply fuel.
