ISLAMABAD – Pakistan International Airlines (PIA) faced a significant disruption on Tuesday, as it was forced to cancel 14 domestic flights due to a shortage of fuel.
This crisis arose after Pakistan State Oil (PSO), a state-owned entity, halted the supply of fuel to PIA over unpaid dues totaling over Rs1.4 billion leading to delays besides cancelation.
The canceled flights included the ones headed from Islamabad to Gilgit, Quetta, Multan, and flights departing from Karachi to Sukkur and Faisalabad.
PIA spokesperson Abdullah Khan confirmed that PSO ceased fuel supply due to payment issues as they now demand advance cash payments only.
The spokesperson also warned of more flight cancelations in the upcoming days as the airline could not pay for fuel in advance, Arab news reported.
PIA has been handling financial challenges for quite a long period of time now. The national carrier requires approximately Rs100 million daily for fuel, and the suspension of supply from PSO has severely impacted flight operations.
The caretaker government’s decision to privatize PIA, coupled with the withdrawal of interim financial support, has intensified the airline’s challenges.
PIA’s challenges worsened recently after it was reported that the supply of spare parts to the carrier could be suspended over cash flow problems. The carrier has also grounded some planes in the wake of financial hardships.
Due to the same economic viability challenges, there have been demands for privatizing the national carrier. Former Aviation Minister Khawaja Saad Rafique also stressed the importance of privatizing the carrier or else it would have to shut operations.
In the final days of the PDM regime, it was also decided to privatize loss-making Pakistan International Airlines during a meeting of the Cabinet Committee on Privatization chaired by then Finance Minister Ishaq Dar.
The committee “after deliberation decided to include Pakistan International Airlines Co. Ltd. in the list of active privatization projects of the ongoing privatization program, following an amendment in the law by the Parliament,” a finance ministry statement had said
