Pakistan’s state-owned oil company resumes fuel supply for PIA aircraft

Pakistan International Airline (PIA) planes are positioned on the tarmac at the Benazir Bhutto International Airport in Islamabad on October 10, 2012. (AFP/File)
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Updated 21 October 2023
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Pakistan’s state-owned oil company resumes fuel supply for PIA aircraft

  • PSO says it has begun supplying fuel for 39 aircraft after receiving advance payment of Rs220 million from the PIA
  • Pakistan plans to privatize national carrier which has amassed losses, unpaid dues of hundreds of billions of rupees

KARACHI: The Pakistan State Oil (PSO) has resumed fuel supply for 39 Pakistan International Airlines (PIA) aircraft after it received advance payment of Rs220 million ($789,804) from the airline, a PSO spokesperson confirmed on Saturday. 

On Tuesday, the PIA announced it had canceled 14 international and domestic flights because of fuel shortages after the state-owned PSO canceled its supply over unpaid dues. The national carrier, slated for privatization by the government, has amassed substantial losses and unpaid dues amounting to hundreds of billions of rupees. 

The airline’s request for Rs 23 billion ($76 million) in operational support was declined by the government, prompting Prime Minister Anwaar-ul-Haq Kakar to initiate a restructuring plan to stabilize the airline’s finances. 

“PKR 220 million have been received [from the PIA] for Saturday and Sunday’s refueling,” Naila Erum, a PSO spokesperson, told Arab News over a text message. “Thirty-nine flights’ list [has been] given for 21.10.23.” 

The PIA’s spokesperson did not respond to queries by Arab News till this report was filed. 

Besides other financial needs for repairing parts and maintaining aircraft, the airline needs Rs100 million a day to pay for fuel from PSO, which canceled supply this week over Rs1.4 billion in unpaid dues. 

Pakistan agreed to fiscal discipline plans as part of a $3 billion arrangement with the IMF, including the privatization of loss-making assets. 

As of October 16, 2023, the outstanding amount owed by PIA to PSO stood at Rs 26.825 billion, Erum told Arab News earlier this week. This comprises Rs 14.893 billion as the principal amount and Rs 11.932 billion as Late Payment Surcharges (LPS). 

“The payable amount against current supplies as of October 17 was Rs 2,072 million,” she said. 

PIA spokesperson Abdullah Khan confirmed on Tuesday that PSO had discontinued fuel supply to the national airline due to payment issues. 

“The government has opted to privatize the airline, discontinuing interim support in the meantime to sustain the airline’s operations,” Khan said. 

PIA is grappling with a fuel crisis as it aims to resume flights to the United Kingdom within the next two months. 

Flights to Europe and the UK have been grounded since 2020, following the European Union’s Aviation Safety Agency’s revocation of the airline’s authorization to fly to the bloc due to a pilot license scandal. 


Pakistan summons Afghan envoy, seeks ‘decisive action’ against militants after killing of four soldiers

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Pakistan summons Afghan envoy, seeks ‘decisive action’ against militants after killing of four soldiers

  • Militants rammed an explosives-laden vehicle into a military camp in North Waziristan, killing soldiers and injuring civilians
  • Pakistan issues a demarche and tells Kabul it reserves the right to respond to militant attacks launched from Afghan territory

ISLAMABAD: Pakistan summoned Afghanistan’s deputy head of mission on Friday and demanded “decisive action” against banned Tehreek-e-Taliban Pakistan (TTP) militants after four Pakistani soldiers were killed in an attack on a military camp in the country’s northwest, the foreign office said.

According to the military’s media wing, Inter-Services Public Relations (ISPR), the attack took place in North Waziristan district bordering Afghanistan when militants attempted to breach the camp’s perimeter but were repelled by troops, before ramming an explosives-laden vehicle into the outer wall.

The blast caused the wall to collapse and damaged nearby civilian infrastructure, including a mosque, it added.

ISPR said all four attackers were engaged by troops and killed, but four soldiers also lost their lives in the exchange, while 15 local residents, including women and children, were injured.

Officials in Islamabad have repeatedly accused Afghanistan of sheltering and facilitating TTP militants, who Pakistan says are backed by India, and whom it refers to as “khwarij,” a term from early Islamic history used to describe an extremist sect that rebelled against authority. Officials in Kabul and New Delhi deny the allegations.

“Pakistan condemns, in the strongest possible terms, today’s terrorist attack carried out by Khwarij belonging to Kharji Gul Bahadur Group on a Pakistan Military camp in North Waziristan District, which resulted in the martyrdom of four Pakistani soldiers,” the foreign office said in a statement. “To convey our strong demarche, the Afghan Deputy Head of Mission was summoned to the Ministry of Foreign Affairs.”

It said the ministry expressed concern over the “continued support and facilitation” provided by Afghanistan’s Taliban authorities to the TTP, an umbrella network of armed factions, which it said had emboldened militants to carry out attacks against Pakistani civilians and security forces.

“Pakistan has demanded a full investigation and decisive action against the perpetrators and facilitators of the terrorist attacks launched against Pakistan from Afghan soil,” the statement added. “The Afghan Taliban regime has been urged to take immediate, concrete and verifiable measures against all terror groups operating from its territory, including their leadership, and deny the continued use of Afghan soil for terrorism against Pakistan.”

The foreign office said the Afghan government had been informed that Pakistan “reserves the right to defend its sovereignty and protect its citizens” and would take all necessary measures to respond to attacks originating from Afghan territory.

Pakistan has faced a surge in militant violence along its western border since the Taliban authorities retook control in Kabul in 2021.

Relations between Pakistan and Afghanistan have deteriorated in recent months, with the two sides witnessing deadly border clashes in October that killed dozens of people. While Qatar later mediated an uneasy truce and talks were held in Istanbul, negotiations failed to reach an agreement on how to address militancy.

The foreign office reiterated in its statement militants continued to enjoy a “permissive environment” in Afghanistan, adding that Kabul was not fulfilling its international commitments by allowing its territory to be used for attacks on a neighboring country.