Cash-strapped PIA teetering on the verge of collapse

ATLANTA (Pajhwok): The Pakistan International Airline (PIA) is on the verge of collapse due to economic problems, with hundreds of its flights canceled on Sunday, say media reports.

Pakistan media outlets reported dozens of PIA flights were scrapped and their operations suspended yesterday due to non-receipt of fuel.

Geo news said the Pakistan State Oil (PSO) had stopped supplying PIA fuel due to non-payment, forcing the cancellation of flights and leaving thousands of passengers waiting at airports.

On the other hand, a PIA spokesman confirmed to the BBC that due to financial crisis and lack of fuel, flight operations were suspended and passengers had been facing problems over the last few weeks.

He acknowledged PIA operations were severely affected due to a shortage of funds with a number of domestic and international flights being cancelled.

PSO has clearance of dues and PIA is paying it 100 million rupees a day, according to the spokesman. But now the daily payment has soared to 150 million rupees.

Pakistan is facing a severe economic crisis and its currency is losing its value against the dollar day by day.

kk/mud