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PSO Stops Fuel Supply to PIA Over Outstanding Dues

Pakistan International Airlines (PIA), the national flag carrier, is currently facing a crisis as Pakistan State Oil (PSO) has suspended its fuel supply at Lahore airport due to non-payment of dues. This has resulted in delayed flights, causing inconvenience to passengers of PK-747 from Lahore to Madina and PK 305 from Lahore to Karachi.

Technical Faults in PIA Aircraft

The situation is further complicated by the fact that several Boeing 777 aircraft of PIA have developed technical faults during international flights. The continuous rise in technical faults is attributed to the lack of maintenance and repair work by the airline’s engineering department.

PIA’s Restructuring and Privatization Plan

In light of these challenges, PIA has expedited its restructuring plan for privatization. The administration is seeking applications from legal and corporate firms for the restructuring plan of the national flag carrier. The Department of Contract Management has been directed to forward the applications by October 6.

As part of the restructuring plan, the assets of the national airline, including property, debts, aircraft, and employees, will be transferred to a new company. PIA will then be presented to the investor as a free-from-debt organization for privatization.

The Future of PIA

The future of PIA is currently uncertain, with the airline grappling with financial difficulties and operational challenges. The privatization plan aims to alleviate these issues and restore the airline to profitability. However, the success of this plan will depend on various factors, including the resolution of the current debt situation, the successful transfer of assets to the new company, and the effective management of the airline post-privatization.

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