ISLAMABAD – The Federal Board of Revenue unblocked the bank accounts of Pakistan International Airlines (PIA) as the contentious matter stood resolved, it emerged on Friday.
Wel-placed sources said the airline cannot make payments through these accounts and can only deposit funds.
The tension between the two departments escalated on Thursday when the revenue board froze PIA’s accounts, disturbing PIA’s flight schedule.
Soon afterward, the talks between the two entities started to settle the matter of the unfreezing of the accounts which led to successful negotiations.
Several accounts of PIA were frozen by the country’s top tax collection authority, depriving the airline of making any transactions; the airline also faced problems paying for refueling as oil-supplying companies refused to continue supply.
Meanwhile, the PIA authorities kept claiming that its flights continued despite the accounts freezing controversy.
Media reports ran contrary to the PIA claims and claimed that several domestic and international flights were rescheduled or delayed.
It was reported that PK-370, PK-306, PK-350, PK-310, PK-302, PK-309, and several other domestic flights were delayed.
As far as the matter os concerned, Federal Board of Revenue officials said PIA had not paid Federal Excise Duty worth Rs4 billion, which it generated by selling air tickets.
When contacted, PIA spokesperson Abdullah Hafeez Khan denied the unblocking of the accounts, saying the issue would be discussed on Monday.
He stated that the flights operations continued as per the schedule and that no disturbance was expected in the airline’s activities due to the prevailing situation.
Last year, the airline’s 53 accounts were blocked over non-payment of dues, which were later restored on assurance of early payments.
