After bearing losses to the tune of Rs9 billion in 17 days, Pakistan International Airlines (PIA) reached an agreement with the Pakistan State Oil (PSO) to address the fuel supply crisis.
A spokesperson for the PIA said that the PSO management played a pivotal role in facilitating the agreement which will pave the way for the supply of aviation fuel to the national flag carrier.
He went on to add that the agreement would result in a return to normal flight schedules that had been disrupted for 17 days due to fuel scarcity.
According to him, this was the first instance since Covid-19 that flight operations have been halted for such a long period of time.
More than 500 domestic and international flights were canceled from different cities of Pakistan after the PSO slashed its fuel supply to the PIA, sources said.
Now, the PSO has assured a daily supply of fuel worth Rs10 billion to keep flights operational, they added. The state oil firm has also extended PIA’s credit limit by an additional Rs5 billion.
The Economic Coordination Committee of the Cabinet had approved a Rs8 billion bailout package for the PIA, they added.