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FBR removes restrictions on PIA’s financial institution accounts

by Pakistan Latest News Update

The Federal Board of Income (FBR) on Thursday withdrew its orders to freeze the Pakistan Worldwide Airways’ financial institution accounts however on the identical time clarified that these directives didn’t bar it from pursuing restoration proceedings.

The nationwide service has been these days embroiled in a monetary disaster. On Wednesday, the FBR had frozen 28 PIA accounts. Moreover, Pakistan State Oil had threatened to cease the airline’s oil provide if excellent dues weren’t settled.
These actions got here at a time when a group from the European Union’s Avi­ation Security Company (EAS­A) was in Pakistan to evaluate points associated to flight security.
The EASA had barred PIA from working flights to Europe after a aircraft crashed in Karachi on Could 22, 2020. The restrictions had been imposed in mild of an explosive declare by former aviation minister Ghulam Sarwar Khan in parliament that 40 per cent of Pakistani pilots had questionable {qualifications}.
In a notification right this moment, the FBR’s deputy commissioner for Inland Income mentioned: “This office has been directed to withdraw the notice mentioned above and to de-attach the bank accounts of the subject taxpayer with immediate effect.”
Nevertheless, the board highlighted that the mentioned de-attachment didn’t bar the division from pursuing “recovery proceedings” below Part 14(3) of the Federal Excise Act, 2005. The legislation pertains to the restoration of “unpaid duty or of erroneously refunded duty or arrears of duty”.
Because the nationwide flag service is experiencing billions of rupees in losses, the federal government has introduced privatisation plans for the debt-ridden PIA together with outsourcing airport operations.
Final month, PIA’s fortunes plummeted to an all-time low when its operations grounded to a halt after PSO reduce the service’s gasoline provide over mounting unpaid dues. Over 500 flights had been cancelled in two weeks.
Though the operations had been later restored, the federal government has now stepped up on its choices concerning the airline’s future.
Final week, the PIA chief govt cancelled scheduled off days on Saturday and Sunday and instructed senior officers to report back to their workplaces, together with the related departmental normal managers and their groups, to finish duties pertaining to the service’s divestment course of.

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