ISLAMABAD – Saudi Civil Aviation Authority has threatened its counterparts in Pakistan to stop all the operations in the country by Pakistan International Airline (PIA).
Pakistan Ministry of Finance urged the authorities at Pakistan International Airlines (PIA) to draft a comprehensible plan for the issuance of payments while expressing grave concern over the rising debt of PIA
PIA is due to pay around Rs. 2.20 billion to the Saudi Civil Aviation Authority, said the ministry.
According to Dunya News, it must be noted that the Saudi Civil Aviation Authority has threatened that all operations by PIA will be stopped until the unpaid dues are cleared.
PIA owes the federal government a debt of Rs. 15.16 billion, Rs 4.22 billion to non-government organisations and Rs. 5.54 billion regarding interest on loans.
Payments worth Rs 25 billion regarding loan and interest are expected to be made by PIA during the period of 1st January 2017 to 30th June 2017.
Official documents have revealed that PIA still requires Rs. 3.48 billion in January, Rs. 5.11 billion in February, Rs. 3.25 billion in March, Rs. 3.28 billion in April, Rs. 6.50 billion in May and Rs. 3.69 billion in June for the issuance of freeze payments.
The threat by the Saudi Civil Aviation Authority comes as a final warning to PIA before they go ahead and completely stop all operations in the KSA. It should also be noted that overall loan volume of PIA has surpassed Rs. 185 billion during PM Nawaz’s regime in the past years.