The government plans to extend the Goods and Services Tax (GST) exemption currently available to Pakistan International Airlines (PIA) to all airlines from next year to ensure a level playing field, officials informed the National Assembly Standing Committee on Privatization.

Privatization Adviser Muhammad Ali told the committee that PIA’s aircraft and spare parts have already been exempted from GST, while other airlines are expected to receive the same relief from next year. Committee Chairman Dr. Farooq Sattar directed that the prime minister and finance minister be approached to extend the exemption across the aviation sector.

During the meeting, Privatization Commission Secretary Usman Akhtar Bajwa said the GST exemption for PIA was introduced following a demand by the successful bidder during the airline’s privatization process.

The committee was also informed that the government has received Rs10 billion from the sale of PIA shares, with another Rs45 billion to be paid after the transfer of a 25 percent stake. Officials said an additional Rs45 billion will be invested in the airline.

Separately, the Privatization Commission said the Roosevelt Hotel in New York will be redeveloped into a high-rise project before privatization, with Citibank shortlisted as the financial adviser. Officials also said the Asian Development Bank has been appointed as the financial adviser for the outsourcing of Islamabad International Airport, and the agreement was expected to be signed later in the day.