The National Assembly Standing Committee on Privatization was informed on Thursday that the International Monetary Fund (IMF) has agreed to remove the 18% General Sales Tax (GST) on aircraft and address Pakistan International Airline Company Limited’s (PIACL) negative equity by cleaning up Rs. 45 billion. This development is seen as a significant step toward stabilizing the struggling national carrier.
The Committee was briefed that, following the IMF’s consent on these critical measures and the reopening of European routes, the government has decided to capitalize on the positive momentum. To prevent further financial losses to the national exchequer, it was decided to issue a fresh Expression of Interest (EOI) for PIACL’s privatization at the earliest opportunity.
Sub-Committee to Investigate PIA’s Decline
During the 5th meeting of the Standing Committee on Privatization, held in Committee Room No. 2 of the Parliament House under the chairmanship of Muhammad Farooq Sattar, MNA, the Committee discussed the Privatization Commission (Amendment) Bill, 2024. However, the bill was deferred for further consideration.
The Committee also decided to form a Sub-Committee to investigate the reasons behind the decline of PIACL. The Sub-Committee, chaired by MNA Sehar Kamran, includes MNAs Khawaja Sheraz Mehmood, Saba Sadiq, and Asia Naz Tanoli. It has been tasked with submitting its findings to the Standing Committee within 30 days.
Meeting Highlights
The meeting was attended by several members of the National Assembly, including Muhammad Usman Awaisi, Asia Naz Tanoli, Saba Sadiq, Nazir Ahmed Bhugio, Nouman Islam Shaikh, Khawaja Sheraz Mehmood, Mehboob Shah, and Moulana Abdul Ghafoor Haideri. Officials from the Ministry of Privatization and the State Life Insurance Corporation of Pakistan (SLICP) were also present. MNAs Sehar Kamran and Arshad Abdullah Vohra participated via video link.
Positive Developments for PIA
The removal of GST on aircraft and the cleanup of Rs. 45 billion in negative equity are expected to provide much-needed relief to PIACL. Additionally, the reopening of European routes and the government’s decision to expedite the privatization process aim to reduce the financial burden on the national exchequer and improve the airline’s operational efficiency.
