ISLAMABAD: Pakistan State Oil (PSO) restored fuel supply to at least 20 flights of Pakistan International Airlines (PIA) for various local and international destinations scheduled for Monday upon payment of Rs84 million by the PIA. On Monday, the PIA released, in two instalments, the payments to PSO. The first was Rs59 million and the second was Rs25 million on the same day.
After adjusting the weekend deficit, Rs35.8 million was available for Monday flights.
The PSO spokesperson reportedly said that Rs220 million had been received (from the PIA) for Saturday and Sunday’s refuelling. A list of 39 flights was given for 21.10.23.
The PIA’s spokesperson remained unavailable for comment at the time of filing this report.
As per agreement with the PIA, from October 16 to 23, daily payment against PSO supply was computed Rs920 million against supplies by PSO at Rs948 million.
The PSO has set a credit limit for PIA of Rs15 billion. Credit exposure was Rs14.95 billion and Rs50 million is cushion available. Payables against current supplies are Rs2.05 billion.
According to spokesperson PSO, as of October 16, 2023, the outstanding amount owed by PIA to PSO stands at Rs26.825 billion, comprising Rs14.893 billion as the principal amount and Rs11.932 billion as late payment surcharges (LPS).
The payable amount against current supplies as of October 17 was stated to be Rs2,072 million.
The PSO resumed the fuel supply for 39 PIA aircraft after receiving an advance payment of Rs220 million from the airline suspended on October 21, 2023, a spokesperson for PSO confirmed on Saturday.
The state-owned PSO had terminated its supply to PIA owing to outstanding dues, adding to the financial woes of the national carrier, which has been accumulating substantial losses and unpaid dues amounting to hundreds of billions of rupees.
In response, the government, gearing towards privatisation of the airline, declined the airline’s request for Rs23 billion in operational support, initiating a restructuring plan under the guidance of Prime Minister Anwaar-ul-Haq Kakar to stabilise the airline’s financial standing.
Chairing a review meeting on the financial situation and privatisation of PIA on Monday, the prime minister stressed the finalisation of the privatisation process within the stipulated time. PM Kakar sought regular compliance reports to be submitted to him in this regard.
Copyright Business Recorder, 2023
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