The National Assembly Standing Committee on Finance has approved a key proposal for PIA. The plan grants Pakistan International Airlines a 15-year tax exemption. The relief applies to imported aircraft and spare parts.
The decision is part of the broader PIA privatization strategy. Officials say the move is designed to attract investors. It also aims to improve the airline’s financial structure.
During the meeting, the Privatization Commission briefed lawmakers in detail. The committee was informed that bidders had requested tax exemptions. These requests covered several categories of imported equipment.
According to officials, the approved package includes tax relief on nine import categories. The exemption is expected to support fleet modernization for PIA. It may also reduce operational costs in the long term.
Committee Chairman Naveed Qamar raised questions about the duration of the exemption. He asked about its long-term impact on national revenue. Officials responded that the 15-year relief had already been approved by the government.
They further clarified that the policy is not limited to PIA alone. Similar incentives could be extended to other sectors if required. This depends on future policy decisions by authorities.
Finance officials warned that removing the tax exemption could risk the entire privatization deal. They said the process could collapse without these incentives. Any reversal may also require approval from international financial partners.
The Finance Secretary added that IMF approval would be difficult if changes are made. This highlights the sensitive nature of the PIA privatization framework. Authorities stressed the importance of maintaining policy consistency.
Minister of State for Finance Bilal Azhar Kayani also addressed concerns. He said issues raised by other airlines will be discussed with international financial institutions. These talks will continue alongside privatization negotiations.
The approval is seen as a major step in restructuring PIA. It is expected to make the airline more attractive to potential investors. Officials believe it may improve long-term financial stability.
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The government will continue reviewing related proposals as the privatization process moves forward. Further decisions are expected in upcoming committee meetings.
