According to details that after the FBR sealed the PIA’s accounts, the company agreed to pay Rs 500 million of the Rs 2.86 billion in federal excise duty taxes that were outstanding.
Once the management of Pakistan International Airlines pledged to pay Rs. 500 million in taxes owed on account of federal excise duty, the bank accounts were unfrozen.
The FBR has already taken similar action against the PIA. After failing to pay taxes of Rs. 26 billion in January of last year, the FBR froze 53 bank accounts of Pakistan International Airlines.
After Pakistan International Airlines’ CEO met with the head of the tax agency and pledged to settle the arrears despite the difficulty the airline was encountering, the accounts were later reinstated.
Significant effects on Pakistan International Airlines’ operations, notably its rural operations, would have resulted from the freezing of the accounts. There were rumors that arrest warrants had been filed for the managing director of Pakistan International Airlines in order to collect the debt.
