The Federal Board of Revenue (FBR) unblocked the bank accounts of Pakistan International Airlines (PIA) on Thursday after matters over non-payment of dues were settled between the two entities.
The FBR had blocked PIA’s bank accounts over non-payment of taxes amid an ‘all-important’ audit from the European Aviation Safety Agency (EASA). However, the bank accounts were unblocked after PIA assured the FBR of clearing all pending dues and submitted written assurance.
PIA is grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts. A delegation of the European Commission and EASA is currently in Pakistan, raising hopes that a ban imposed on PIA flights to the continent may be lifted.
The ban was imposed after a May 2020 plane crash in Karachi and a statement made by the then aviation minister, Ghulam Sarwar Khan, in the parliament, telling the house that a large number of commercial pilots held fake licences or had cheated in exams.
The national carrier has suffered massive losses since restrictions were imposed on the national airliner.