FBR Resolves Tax Dispute, Unlocks PIA's Bank Accounts

In a significant development, the Federal Board of Revenue (FBR) has lifted restrictions on Pakistan International Airlines' (PIA) bank accounts, marking the resolution of a longstanding dispute over unpaid dues. The national tax collection body initially froze PIA's accounts during a critical audit by the European Aviation Safety Agency (EASA) due to outstanding tax payments.

The breakthrough came after PIA provided assurances, backed by written commitments, to settle all pending dues. This move brings relief to PIA, currently facing a severe financial crisis and grappling with mounting debts, sparking concerns about its ability to sustain air operations.

The audit by EASA, a crucial factor in the international aviation industry, had put additional pressure on PIA's financial standing. The unblocking of accounts is a positive step, indicating a commitment to financial responsibility.

The timing of this resolution coincides with a delegation from the European Commission and EASA currently in Pakistan. This visit sparks optimism that the ban on PIA flights to Europe, imposed in the aftermath of the May 2020 plane crash in Karachi and allegations of fake licenses among commercial pilots, may be lifted.

The ban has significantly impacted PIA's financial health, leading to substantial losses. The ongoing visit by the European delegation holds potential implications for the future operations of the national airliner in the region.