In a recent development, Pakistan International Airlines (PIA) has made significant progress in its revival efforts, with multiple bidders re-entering the process. A meeting of the National Assembly’s Standing Committee on Privatization, chaired by Farooq Sattar, discussed details of PIA’s current financial situation and obligations. It was revealed during the meeting that PIA’s total obligations amount to 45 billion rupees, out of which 26 billion rupees are federal Board of Revenue (FBR) taxes. Additionally, the Civil Aviation Authority is also owed 10 billion rupees, with the remaining amount pertaining to pension obligations.
Committee members suggested that in the previous phase, bidders had requested an 18% exemption in General Sales Tax (GST) for the purchase of new aircraft and expansion of the fleet. They argued that removing this tax would facilitate the acquisition of new planes. In this regard, the International Monetary Fund (IMF) has also supported the idea that if PIA is privatized, this tax could be waived to promote investment in the private sector. Furthermore, the committee was informed that PIA’s non-core assets would not be included in the bidding process. The government is formulating a separate policy for these assets, with consultants presenting two to three options to the Cabinet Committee on Privatization.
The privatization of PIA is seen as a crucial step towards revitalizing the country’s economy, with expectations of improved financial viability for the national airline upon its successful completion.
