Pakistan's Federal Revenue Board (FRB) asked the local Civil Aviation Authority (CAA) on May 24, 2018 to ground Shaheen Air International (Karachi International) over unpaid federal excise duty for March, The News has reported.

However, according to Flightradar24 ADS-B data, the airline continues to fly as of May 28, albeit with numerous cancellations over the last few days. According to Daily Pakistan, the carrier argues that the non-payment was solely due to a delay in transferring funds and does not signify any underlying liquidity issues.

The FRB alleges that the carrier owes it PKR521.4 million rupees (USD4.5 million) in unpaid tax for March 2018. The deadline for the payment of the duty fell on May 15. The tax authority is also seeking to have all the bank accounts of the carrier attached so that all revenues can be directed immediately towards the payment of the overdue duty.

"Our regular operations are on and flight schedule is as per normal. We are a law-abiding corporate entity and we are aware of our duties and responsibilities," Shaheen Air Director Marketing Zohaib Hassan has said.