The government has renewed its push to privatize the struggling Pakistan International Airlines (PIA), aiming to attract investors for the national flag carrier. According to sources, the Privatization Commission is expected to invite expressions of interest (EOIs) for PIA’s privatization by the end of this month.

In a move to address investor concerns, the government has removed the 18 percent general sales tax (GST) on the purchase of new aircraft, which had previously been a significant hurdle for potential buyers.

Last month, the International Monetary Fund (IMF) approved key measures to facilitate PIA’s privatization, including granting sales tax exemptions and removing equity losses. These steps are expected to make the airline more appealing to investors.

PIA’s privatization efforts have faced challenges in the past. In October 2024, a real estate developer offered just Rs. 10 billion for a 60 percent stake in the airline, a bid that was rejected by the government for being too low.