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Pakistan’s PIA aircraft seized at Malaysia airport over non-payment of dues worth $4.5 million, second such incident in 2 years

PIA alleged that the leasing firm only owns one of the attached engines and that the airline owns the entire aircraft.

Pakistan, which is facing a dire economic predicament, has faced a humiliating situation as its national carrier’s plane has been seized in Malaysia over non-payment of dues worth $4.5 million. A Boeing 777 operated by Pakistan International Airlines (PIA) has been impounded at Malaysia’s Kuala Lumpur International Airport, leaving the passengers stranded.

Later the passengers of the flight were accommodated on an alternative aircraft,

Notably, Malaysian officials held back another Boeing 777 plane in 2021 for two weeks due to a similar issue. Later, after receiving a diplomatic guarantee from Pakistan on the payment of the dues, it was released and brought back to Pakistan on January 27, 2021, along with 173 passengers and crew members on board.

The aircraft with the BMH registration number was leased by Malaysia to PIA. According to a PIA spokesperson Abdullah Hafeez Khan, the corporation took possession of the aeroplane after a Malaysian court ordered it to do so at the lessor’s request. He argued that the disputed sum is $1.8 million, not $4.5 million, and it has already been paid. He said that the Pakistan government-owned airline will pursue legal action to get the carrier released.

In addition, PIA alleged that the leasing firm only owns one of the attached engines and that the airline owns the entire aircraft.

In accordance with the spokeswoman, the company’s assertion that warranted the confiscating order was incorrect, and as a result, PIA has hired a Kuala Lumpur-based legal team to represent itself in court.

Furthermore, the PIA representative informed that the passengers of the aforementioned flight have been accommodated on an alternative aircraft and that the contested Boeing 777 would continue to fly as a regular commercial flight from Kuala Lumpur.

Amid significant political unrest, Pakistan is also experiencing a severe economic crisis as a result of a considerable decline in its foreign exchange reserves, which has had an impact on imports and numerous international services. In order to decrease the debt-ridden country’s spending by 15%, Prime Minister Shehbaz Sharif directed the foreign ministry to trim the number of its missions overseas, as well as their offices, employees and other expenses.

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