Pakistan State Oil (PSO) on Wednesday halted the fuel supply to Pakistan International Airlines (PIA) at Lahore airport due to non-payment of dues.

The fuel supply suspension has caused delays and cancellations for passengers on flights from Lahore to Madina and Lahore to Karachi.

PIA spokesperson confirmed the development and said that the airline is in talks with PSO to resolve the issue and resume fuel supply.

Earlier, it was reported that several Boeing 777 aircraft of PIA developed technical faults during international flights due to the lack of maintenance and repair work.

PIA aircraft have been developing technical faults at an alarming rate in recent months, raising concerns about the safety of passengers.

Earlier in the day, PIA flight operations to Canada faced serious challenges of closure amid financial challenges.

Swissport Company issued a letter to stop providing ground-handling services as the national airline faced serious financial challenges.

“Due to non-payment of dues, PIA flight operation to Canada services are being stopped from 3rd October at 5 pm,” the statement read.

The Swissport Company demanded $248,000 dollars be paid immediately along with an advance of $100,000 dollars for provision of future services.

Later, PIA Spokesman Abdullah Hafeez said all payments had been made to the Swissport company and denied reports that the flight operations were suspended.

He said that the payment was delayed due to difference in time between the two countries.

Dues to the handling agency and the fuel company amounting to $200,000 have been paid, he said and confirmed that all PIA flights to Canada will operate normally.

Further, the national flag carrier is also working on a restructuring plan ahead of privatization.

Legal and corporate firms have been invited to submit applications to develop the restructuring plan.

The assets of the national airline, including property, debts, aircraft, and employees, will be transferred to the new company.

PIA will then be presented to investors as a debt-free organization for privatization.

The government's decision to privatize PIA is seen as a last-ditch effort to save the national airline, which has been plagued by financial losses and mismanagement for years.