Fuel supply is restored to at least 20 PIA aircraft by PSO
After receiving payment of Rs84 million from Pakistan International Airlines (PIA), Pakistan State Oil (PSO) reinstated fuel supply to a minimum of 20 PIA flights, scheduled for Monday, to various domestic and international destinations.
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The funds to PSO were made available by the PIA on Monday, in two installments. On the same day, the first was worth Rs59 million and the second was worth Rs25 million.
Following the weekend deficit adjustment, Rs35.8 million became available for flights on Monday.
According to the PSO spokeswoman, the PIA had given them Rs220 million for the refuelling on Saturday and Sunday. For October 21, 23, a list of 39 flights was provided.
When this article was filed, a representative for the PIA was still not available for comment.
In accordance with the terms of the PIA agreement, daily payments against PSO supplies from October 16 to 23 were calculated at Rs920 million, with PSO supplies valued at Rs948 million.
The PSO has allocated a Rs15 billion credit limit for PIA. There was a 14.95 billion rupee credit exposure, with a 50 million rupee cushion. There are Rs. 2.05 billion in payables against current supply.
The outstanding sum owed by PIA to PSO as of October 16, 2023, is Rs26.825 billion, which is made up of Rs11.932 billion in late payment surcharges (LPS) and Rs14.893 billion in the principle amount, according to PSO spokeswoman.
As of October 17, the amount owed against current supplies was reported to be Rs 2,072 million.
After receiving an advance payment of Rs. 220 million from the airline that had ceased operations on October 21, 2023, the PSO restored fuel supplies for 39 PIA aircraft, a PSO official revealed on Saturday.
Due to unpaid debt, the state-owned PSO cut off its supply to PIA, exacerbating the national carrier's already dire financial situation. The unpaid debt now totals hundreds of billions of rupees.
The airline requested Rs23 billion in operating help, but the government turned it down since it was moving closer to privatizing the airline. Prime Minister Anwaar-ul-Haq Kakar then oversaw the start of a restructuring plan aimed at stabilizing the airline's financial situation.
The prime minister emphasized the need to complete the privatization process within the allotted time frame while presiding over a review meeting on the financial status and privatization of PIA on Monday. In this context, PM Kakar requested that he get compliance reports on a regular basis.
