PSO Halts Fuel Supply to PIA for Short-Haul Routes

KARACHI: The Pakistan State Oil (PSO) has discontinued its fuel supply to Pakistan International Airlines (PIA) due to outstanding dues exceeding Rs 26.5 billion.

According to sources within the state oil company, the suspension of fuel supply initially affects domestic flights operating on shorter routes, while no such action has been taken for longer-haul flights.

It has been highlighted that PIA has reached its credit limits, and as of October 10, the outstanding dues have surpassed Rs26.5 billion. Despite this development, the fuel supply for PIA’s international flights continues without interruption. PSO, however, is grappling with its own severe financial crisis due to unpaid debts.

In a recent cabinet decision on Wednesday, approval was granted for engaging a financial advisory consortium to facilitate the privatization of the national flag carrier.

Previously, Caretaker Privatisation Minister Fawad Hasan Fawad provided a comprehensive overview of the privatization status of various entities, including PIA, which has been incurring significant losses.

“It has been determined that PIA will be privatized as a clean entity, free from legacy losses,” Fawad explained. The Pakistan International Airline Company (PIAC), operating as a clean entity with only existing core assets and current liabilities, will be made available for privatization.

The minister also revealed that PIA’s legacy liabilities would be transferred to a holding company, while the assets slated for sale include the national carrier’s aircraft, routes, landing rights, core engineering facilities, and air service agreements.