LAHORE – Pakistan International Airlines (PIA) is at the brink of default as the flight operations of national flag carrier are badly disrupted as economic woes mount.
Pakistan State Oil (PSO) stopped the fuel supply to airline at several airports due to non-payment of dues, and now several flights from Islamabad to Karachi have not taken off on Friday.
Flights PK-309, PK-319 were delay delayed, while some other flights from capital to Karachi remained suspended. Amid the worrisome situation, children and elderly people remained in dire straits.
Government officials called for privatizing the airline as they have expressed concerns over the impact of the loss-making entity on the national exchequer.
Lately, Privatisation Minister Fawad Hassan Fawad expressed resolve to divert major loss-making state-owned enterprises to avoid a substantial financial drain.
In meeting with World Bank Resident Director, minister discussed the privatisation agenda with a focus on the divestment of PIA and other state-owned entities.
Last week, the airline suspended operation to Ottawa as Swiss Port Company wrote letter notifying stop providing ground-handling services after PIA failed to pay despite multiple intimidation.
It said due to non-payment of dues, PIA flight operation to Canada services are being stopped from 3rd October at 5 p.m.
Swiss Port Company told PIA to clear $0.24 million immediately along with an advance of $100,000 dollars for the provision of future services.
It said PIA was repeatedly reminded to pay dues, and over failure to clear dues, the ground-handling services are being discontinued as per the respective terms of the agreement between the two companies.
