KARACHI: In sheer contrast to the record first half after-tax profit of Rs15.8 billion in the current fiscal year, the cash-starved Pakistan State Oil (PSO) suspended jet fuel supply to Pakistan International Airlines (PIA) on account of accumulating outstanding dues.
According to a spokespersons for the state-owned oil marketing company, the national flag-carrier airline owed Rs12 billion to PSO to-date, adding that the suspension of fuel jet may affect flight operations of the airline.
According to aviation fuel supply agreement signed between the two companies in 2002, the PIA is required to make payment within seven days of oil delivery.
Earlier, the PSO had warned that the airline failed to pay money despite repeated requests, which was a clear breach of agreement.
