KARACHI – Pakistan State Oil (PSO) has agreed to continue to supply fuel to Pakistan International Airlines (PIA) despite default running into over Rs 1.0 billion after receiving assurances that payments will be made on daily basis. It is noteworthy that the deadline given by PSO to PIA for payment of dues expired on Tuesday, a decision which was likely to cause PIA flights to ground to a complete halt across the country.
However, PIA secured a deal with PSO to maintain the supply of fuel just in the nick of time. According to sources, PIA has agreed to immediately release Rs 100 million to PSO on Tuesday which would be credited on Wednesday to avoid the discontinuation of fuel supply from PSO. Besides releasing the amount, PIA would also pay fuel charges on daily basis for products up liftmen besides making a plan to pay the already outstanding dues which have swelled to over Rs 1.0 billion, sources said.
“For the accrued receivables PIA will share a detailed plan with PSO” they said. PIA officials have made fresh commitments with PSO during a meeting on Tuesday, they added.
