ISLAMABAD - The Federal Board of Revenue (FBR) on Friday has seized the accounts of Pakistan International Airlines (PIA) over non-payment of taxes of Rs3.5 billion, sources said.

The FBR is in dire need of collecting taxes in remaining three days of the outgoing financial year to reach the revised annual revenue collection target of Rs2,007 billion.

"Yes we have frozen the accounts of the Pakistan International Airlines and hope that issue will resolve in couple of days", said a top FBR official while talking to The Nation.

However, PIA spokesperson Mashhood Tajwar expressed ignorance on the issue and said: "I don't have complete details about this matter, as officials of the FBR and PIA are having discussions on this issue as a normal practice. The PIA operations are going as usual.”

Sources say that PIA's operation could be paralysed in next few days if tax department does not restore its accounts.

The airline will have to face problems in paying salaries, if the FBR does not unfreeze its accounts in couple of days. Negotiation is on between the FBR and PIA officials for undoing the seizure.  The FBR is struggling to achieve the revised revenue collection target of Rs2,007 billion during the outgoing fiscal year 2012-2013. Sources say that the FBR's provisional revenue collection stands at Rs1,863 billion and has to collect Rs144 billion in three days (June 28 to June 30) to meet the annual target. Therefore, FBR is trying to collect taxes from non-taxpaying department.