Pakistan International Airlines (PIA) faced a significant disruption on Tuesday when it was compelled to cancel 14 domestic flights due to a shortage of fuel. The canceled flights included those headed from Islamabad to Gilgit, Quetta, Multan, and flights departing from Karachi to Sukkur and Faisalabad.
“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 cancellation,” a PIA spokesperson said. PIA spokesperson Abdullah Khan confirmed that PSO ceased fuel supply due to payment issues, as they now demand advance cash payments only. He also warned of more flight cancellations in the upcoming days as the airline couldn’t pay for fuel in advance.
PIA has been grappling with financial challenges for an extended period. The national carrier requires approximately Rs100 million daily for fuel, and the suspension of supply from PSO has severely impacted flight operations. 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, leading to the grounding of some planes.
The caretaker government’s decision to privatize PIA, coupled with the withdrawal of interim financial support, has intensified the airline’s challenges. Due to these economic viability challenges, there have been demands for privatizing the national carrier. Former Aviation Minister Khawaja Saad Rafique stressed the importance of privatizing the carrier to avoid its closure.
In the final days of the PDM regime, it was 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.
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