Islamabad: The second attempt to privatize the national airline, PIA, is fully prepared. Several returning bidders and stakeholders are participating in the process.
A meeting of the National Assembly Standing Committee on Privatization was held under the chairmanship of Farooq Sattar. The meeting was informed that in the previous phase, bidders had recommended waiving the 18% GST imposed on the inclusion of new aircraft. They believed that removing this tax would make it easier to acquire new planes.
PIAās Financial Liabilities
The committee was briefed that PIA’s total liabilities amount to Rs. 45 billion. This includes Rs. 26 billion in tax liabilities owed to the FBR. Additionally, Rs. 10 billion is due to the Civil Aviation Authority. The remaining amount consists of pension liabilities.
The IMF has agreed that if PIA is privatized, the 18% GST could be removed to encourage private sector investment in new aircraft.
Non-Core Assets Not Included in Bidding
The committee was further informed that non-core assets are not part of the privatization bidding process. The government is formulating a separate policy for these assets. A consultant has proposed two to three options to the Cabinet Committee on Privatization in this regard.
