Pakistan State Oil (PSO) has asked Pakistan International Airlines (PIA) to clear the outstanding dues worth Rs 12.1 billion or the company would suspend supply to the national flag-carrier, it is learnt. Sources in the Petroleum Ministry said PIA may not be able to continue with the routine flights as it does not have money to procure fuel. The national flag-carrier is not a defaulter of international suppliers, but has not settled its dues with PSO.
"Despite continuous non-payment and default on payment commitments by PIA, PSO continued uninterrupted fuel supply to PIA. We have raised the issue on all the highest forums and have informed the government high-ups and PIA management if the national airline is not clearing our outstanding dues immediately, we would completely suspend jet fuel supply to PIA. A couple of weeks ago the Managing Director (MD) PIA agreed with MD PSO of clearing outstanding dues in instalments, but no action is taken so far by the PIA management. In the meeting, MD PSO made it clear to the PIA senior management that PSO would not be able to continue uninterrupted fuel supply in case of non-payment by PIA and the national flag-carrier has not taken any step to clear the outstanding dues of PSO," the official source maintained.
According to official sources, the PIA management was running from pillar to post to keep its operations intact and has started purchasing jet fuel from other companies. The PSO's outstanding dues against other clients have reached Rs 223 billion of which Rs 103.7 billion are against Water and Power Development Authority (WAPDA), Rs 64.8 billion against Hub Power Company Limited (HUBCO), Rs 26.5 billion against KAPCO and Rs 4.5 billion against KESC. The company has to pay Rs 81.9 billion to different fuel suppliers including local refineries and international fuel supplier, Kuwait Petroleum Company Limited.
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