The Federal Board of Revenue (FBR) has exempted Rs4.29 billion in default surcharges and penalties on the current income tax liabilities of Pakistan International Airlines Corporation Limited (PIACL), paving the way for the airline’s privatization process.
The decision was notified through SRO 1129(I)/2026, issued on Thursday.
According to the notification, the exemption covers Rs263.82 million in default surcharges and penalties related to withholding tax (other than salary) for the period from April to December 2024, along with Rs4.03 billion in surcharges and penalties on advance income tax for May 2024 to June 2025. The total relief amounts to Rs4.293 billion.
The FBR said the tax liabilities remain subject to final determination. It added that the exemption has been granted to facilitate the successful completion of PIACL’s divestment, ensure the timely execution of bid documents, and meet the conditions agreed with the successful bidder.
Under the notification, PIACL must clear its outstanding current income tax liabilities within four years, after a one-year grace period, through equal annual installments following the First Completion of the Share Purchase and Subscription Agreement between the Government of Pakistan and the successful bidder.
