The National Assembly Standing Committee on Finance has endorsed a proposal to grant Pakistan International Airlines (PIA) a 15-year tax exemption on the import of new aircraft and spare parts, a key incentive tied to the airline’s ongoing privatization.

During the committee meeting, the Secretary of the Privatization Commission informed lawmakers that all four shortlisted bidders had sought tax relief on certain imports. Under the proposed arrangement, exemptions will apply to nine specified categories of imported items.

Committee Chairman Naveed Qamar questioned the length of the exemption and its impact. The Privatization Commission secretary responded that the tax relief had already been approved by the government and Parliament, adding that it was not intended solely for PIA and could be extended to others through future policy decisions.

Qamar observed that removing the tax incentive at this stage could undermine the privatization process. Finance Secretary Imdad Ullah Bosal warned that withdrawing the exemption could derail the sale of the national carrier and said reversing the decision would require IMF approval, which would be difficult to secure.

Minister of State for Finance Bilal Azhar Kayani said concerns from private airlines over receiving similar tax treatment would be raised with the IMF as the government moves forward with PIA’s privatization.