KARACHI, Oct 14 (DNA): The cash-strapped Pakistan International Airlines
(PIA) has failed to fulfill its promise made with the Pakistan State Oil
(PSO) to pay Rs 1.7 billion immediately for jet fuel supply.

According to sources, the PIA has to pay a staggering amount of Rs 26.5
billion of its outstanding dues to PSO.

PIA management assured PSO officials of payment with fuel supply on a
daily basis due to the financial crisis. But, the PIA could not fulfill
its new promise.

The national airline has paid only Rs 62.5 million so far this week to
PSO despite the fact that PIA was to pay 1.7 b to PSO immediately.

In a recent development, the PSO has refused to provide jet fuel to PIA
for domestic flights on shorter routes.

Sources in the state oil maintained that in the first phase, the fuel
supply for domestic flights on shorter routes has been stopped whereas
no such measure has been taken for flights on longer routes.

Fuel supply to small cities including Sukkur, Multan, Quetta, Rahim Yar
Khan, and Gwadar has been stopped.

All international and domestic flights from major airports are
continuing to operate, sources said

The PSO officials warned that if the payment issue is not resolved,
further steps may be taken.

Sources stated that the fuel supply to PIA for international flights
continued as usual. They said that PSO was also facing severe financial
crisis due to non-payment of dues. DNA