PIA Commits to Daily Payment of Rs100 Million to PSO

In a critical development for Pakistan International Airlines (PIA), the national carrier has pledged to Pakistan State Oil (PSO) that it will make daily payments of Rs 100 million. This commitment comes as PSO has linked the supply of fuel to PIA with the settlement of its outstanding dues.

Fuel Supply Conditioned on Payments

Sources indicate that the fuel supply to the national airline is contingent upon the daily payment of Rs 100 million. This agreement signifies a critical step towards alleviating PIA's financial troubles and ensuring the continuity of its operations.

Fuel Approval Process

While PIA is prepared to honor its commitment to PSO, there remains an important procedural aspect. The national airline will formally request PSO to provide fuel to its aircraft. Fuel deliveries will proceed following the approval of this request by PIA.

Immediate Payment of Rs 100 Million

In a positive move, sources have revealed that PIA made an online payment of Rs 100 million to PSO during a recent meeting. This step underscores the airline's earnest intention to settle its dues and maintain a stable relationship with PSO.

Concerns Over Flight Operations

Earlier reports suggested that the flight operations of PIA were under threat due to a severe financial crisis. The situation escalated when Pakistan State Oil halted fuel supply to PIA over unpaid dues. As a result, flight operations were severely affected at airports in Multan, Sukkur, and Gilgit.

Confirmed Suspension of Flights

The PIA spokesperson confirmed the suspension of 14 flights scheduled for a specific day, highlighting the seriousness of the situation. According to the agreed payment schedule, PIA is obligated to pay Rs 650 million to Pakistan State Oil.

The Ongoing Financial Crisis

To provide context to the situation, it's worth noting that PIA requires an estimated Rs 7 billion to maintain its flight operations. In response to the financial challenges, Pakistan International Airlines has sought assistance from the caretaker government.

The commitment to daily payments of Rs 100 million by PIA to PSO represents a crucial lifeline in the midst of a financial crisis. It serves as a significant step toward resolving outstanding issues and ensuring the smooth operation of the national airline. The situation underscores the importance of financial stability and timely payments in the aviation industry, a factor that is essential for the continued functioning of vital services.