PSO restores supply of jet fuel to PIA

Pakistan State Oil (PSO) has restored supply of jet fuel to Pakistan International Airlines (PIA) on the assurance of PIA management for payment of outstanding dues as per agreement. The PSO continued the supply of fuel to PIA despite outstanding dues of the airline reached Rs 15.6 billion in current year for smooth domestic and international flight operations. However, a few days back, the PSO suspended the fuel supply over nonpayment of fuel charges.
The PSO spokesman told Business Recorder that PIA management had committed to PSO for a regular payment on daily basis following an agreement between the two sides. But the management of PIA stopped payment of outstanding dues to PSO a few days back and the PSO had to suspend the fuel supply.
When PSO suspended supply of fuel to the PIA last time, the management of the flag carrier had said that it was not in a position to clear the outstanding dues; however, it would pay the payment of fuel consumed on daily basis. Therefore, the PSO started the supply of fuel to PIA for the interest and facilitation of passengers.
The spokesman said that PSO had to suspend the supply of fuel a number of times earlier for facing the same issues. The PIA could not honor its commitment, he added. Spokesman PIA Mashood Tajwar confirmed that the issue has been resolved which was raised due to lack of communication regarding payments. The PIA regularly clears the dues, he added. Earlier on Tuesday, two PIA flights got disturbed when the PSO suspended the supply of fuel but later on, the supply was resumed.
The accumulated losses of PIA have reached Rs 316 billion with a loss of Rs 40 billion in the year 2016 alone. The airlines primary monthly expenses include loan and markup repayments, fuel purchase, and disbursement of salaries to employees. The PIA''s debts have risen up to Rs 186.5 billion. Back in January 2017, the PIA management informed a three-member Senate committee that the airline earned approximately Rs 7.5 billion, whereas its monthly expenses mounted up to Rs 13.14 billion, almost the double of the earning.