Pakistan's taxation agency, the Federal Board of Revenue (FBR), briefly froze the bank accounts of PIA - Pakistan International Airlines (PK, Islamabad International) last week in a partly successful attempt to recover unpaid taxes.
According to Pakistan's Express Tribune newspaper, the FBR lifted the freezing order on February 23 after PIA officials agreed to pay PKR500 million Pakistani rupees (USD1.9 million dollars) of the PKR2.86 billion (USD11.1 million) reportedly owed. In addition, the newspaper says there were plans afoot to have the airline's managing director arrested over the matter. It is the second time in 13 months that the FBR has frozen PIA's bank accounts.
"The government dues amounting to Rs2,864 (M) are outstanding against M/S Pakistan International Airlines NTN: 0803450 for multiple tax periods," says the freezing order sent to PIA's bankers and signed by Sharjeel Ahmed, deputy commissioner of FBR's Inland Revenue Unit-02. "Now therefore, in exercise of powers conferred under Section 14(3) read with Rule 60(1)(d) of the Federal Excise Act, 2005, I do hereby issue/serve this notice for attachment of the bank account and any other bank account maintained against NTN: 0803450 of the defaulter maintained with your bank if any, with immediate effect till the amount of tax is paid or recovered in full."
The freezing order was subsequently revoked after a meeting between PIA and FBR officials that secured assurances to pay down the debt by PKR500 million. In January 2022, the FBR temporarily froze 53 bank accounts belonging to PIA after accruing PKR26 billion (USD10 million) in tax debts. That order was lifted 24 hours later after intervention by PIA's CEO.
ch-aviation has approached PIA for further details, but last week's freezing order did not appear to have any operational impact on the airline. According to ch-aviation PRO airlines data, PIA is flying to 50 destinations in 22 countries with 22 active aircraft (a further 11 are inactive).
