PIA’s bank accounts were initially blocked by the national tax collection body due to non-payment of taxes during an ongoing audit by the European Aviation Safety Agency (EASA).
However, the accounts were eventually unblocked after PIA assured the tax collection body of clearing all pending dues and provided a written assurance.
PIA is currently facing a severe financial crisis, leading to concerns about its ability to maintain air operations amidst increasing debts.
There is hope that a ban on PIA flights to Europe may be lifted as a delegation from the European Commission and EASA is currently in Pakistan.
The ban was imposed following the May 2020 plane crash in Karachi and a statement by the former aviation minister regarding fake licenses and cheating by commercial pilots.
Since the imposition of restrictions, the national carrier has incurred massive losses.