Pakistan's national airline, Pakistan International Airlines (PIA), has been forced to cancel dozens of flights due to a shortage of fuel. The airline, which has long been criticized for being poorly managed, is facing a financial crisis as the government grapples with a balance of payments crisis caused by massive debt repayments. This has led to the non-payment of dues to the state-owned fuel supplier, Pakistan State Oil (PSO), resulting in a disruption in fuel supply and the cancellation of 48 international and domestic flights.

The airline's reputation has also been tarnished by a series of strikes, hijackings, and accidents, including a deadly crash in Karachi in May 2020. In an effort to address its financial woes, the interim government has announced plans to privatize the airline and other state-run companies. However, there are calls for the privatization process to be made more transparent and expedited to prevent further financial losses.

PIA has agreed to pay PSO 100 million Pakistani rupees ($360,000) every day to cover its dues, and on Wednesday, PSO received a payment of 150 million rupees in return for refueling 26 flights. The airline expects normal service to resume from Thursday, although it did not provide further details. According to Bloomberg, PIA's liabilities currently exceed its total assets by five times. The airline came into existence in 1955 when the government nationalized a loss-making commercial airline, and it experienced rapid growth until the 1990s. However, decades of mismanagement and instability have severely impacted Pakistan's economy, leading to multiple bailouts from the International Monetary Fund (IMF).