ISLAMABAD: Pakistan State Oil (PSO) has once again stated that it has not suspended fuel supply to Pakistan International Airlines (PIA) despite limited payments by the carrier against the supplies.
Pakistan International Airlines has been given Rs15 billion credit limit that was already exhausted.
The PSO is currently grappling with financial difficulties caused by trade receivables worth Rs765 billion.
In light of this, PSO has been in active talks with PIA to come up with a feasible solution to tackle this problem.
Despite PIA’s outstanding balance of PKR 26.8 billion as of October 26, 2023, PSO is striving to supply of fuel to the national carrier.
A meeting was conducted on October 16, 2023, between senior officials from both organisations to determine a course of action. As per the understanding, PSO will supply fuel to PIA, subject to payment against flight-wise priority from October 16 to 26, 2023.
In order to further support the national carrier, PSO has extended the credit facility by Rs500 million after another round of meeting held on October 27, 2023.
Copyright Business Recorder, 2023
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