- Currency difference between PIA, PSO has been resolved.
- PIA flight services remained disrupted for the past 2 weeks.
- The decision comes after a meeting of senior officials on October 16.
KARACHI: Pakistan State Oil (PSO) has provided Pakistan International Airlines (PIA) with an additional credit of Rs 500 million, enabling the national carrier to gradually restore its flight operations.
According to a The news A report released on Sunday, the currency dispute between the two aforementioned entities has been resolved, paving the way for an increase in fuel supply to the airline in the near future, a PIA spokesperson said.
In the last two weeks, PIA flights remained significantly disrupted, resulting in the cancellation of around 375 international and domestic flights. This disruption was caused by the state oil company’s decision to reduce the supply of fuel to the state carrier following outstanding debts.
PIA defaulted on payments owed to PSO and the state oil company was supplying fuel after receiving advances. The national airline has in the last two weeks adjusted its flights according to the fuel supply, canceling several scheduled flights.
On the other hand, PSO said it has not suspended fuel supply to PIA despite reduced payments by the carrier against supplies. “PIA was given a credit line of Rs 15 billion, which was already exhausted,” the PSO said.
The state oil company said it is currently facing financial difficulties caused by trade receivables of Rs765 billion. He was in talks with PIA to find a feasible solution to address this issue. Despite PIA’s outstanding balance of Rs 26.8 billion as on October 26, PSO is trying to supply fuel to the national carrier, it said.
A meeting between top officials of both government agencies was held on October 16 to determine the course of action.
As per the agreement, PSO was to supply fuel to PIA, subject to payment against priority flight from October 16 to 26. The meetings took place on October 27, PSO said.
