October 26, 2023 (MLN): Pakistan International Airlines (PIA) has resumed some of the flights after making partial payments to Pakistan State Oil (PSX: PSO) for the supply of jet fuel.
PIA paid Rs60 million to PSO on Wednesday morning, which enabled the oil company to release fuel for eight flights.
Later in the evening, PIA paid another Rs70m to PSO, which agreed to provide fuel for nine flights on Thursday.
PIA has been facing a severe financial crisis due to its mounting debt. The national carrier has a substantial outstanding debt to PSO, which is a crucial factor in maintaining a steady supply of jet fuel for its operations.
According to sources, PSO supplied fuel worth Rs3.45 billion to PIA from October 1 to October 18, 2023.
However, PIA failed to settle its dues, which prompted PSO to suspend the fuel supply, which, in turn, resulted in the cancelation of several PIA flights.
To recall, on October 22, considering the financial health of the national flag carrier, the caretaker government constituted a committee to restructure the debt of Pakistan International Airline (PIA).
The committee will present a plan for restructuring/ re-profiling the existing debt stock of PIA and assess the exact financing requirements of PIACL for the period from October 2023 to March 2024 for optimal operations.
