IMF approves removal of 18% GST on aircrafts, clears Rs45bn negative equity of PIA

January 10, 2025 (MLN): The International Monetary Fund (IMF) has agreed to remove the 18% Goods and Services Tax (GST) on aircrafts and facilitate the cleaning of Pakistan International Airline Company Limited’s (PIACL) Rs45 billion negative equity.

The aforementioned information was shared with the National Assembly Standing Committee on Privatization, according to a press release issued by the National Assembly of Pakistan on Thursday.

The committee, chaired by Muhammad Farooq Sattar, MNA, convened at the Parliament House in Islamabad.

The committee was further informed that it was decided to capitalize on the positive momentum generated by the IMF’s consent on critical tasks and the opening up of European routes

To avoid further loss to the national exchequer, it was decided to go for a fresh expression of interest (EoI) at the earliest.

It has been decided that the losses of the national flag carrier will be transferred to the Holding Company, making PIACL free of liabilities.

This move is aimed at making PIACL more attractive and lucrative for investors who had been otherwise hesitant to acquire the national flag carrier due to its losses.

The committee appointed a sub-committee under the convenorship of MNA Seher Kamran to investigate the reasons for the decline of PIACL.

The sub-committee, comprising Khawaja Sheraz Mehmood, Saba Sadiq, and Asia Naz Tanoli, has been asked to submit its report within 30 days.

The committee discussed the Privati­sation Commission (Amend­ment) Bill, 2024, and decided to defer it.

Pakistan International Airlines remains on the top of the list of 24 public sector entities included in the government’s privatization program (2024-29).

The secretary of the Privatisation Commission informed the committee that the agreement on the privatization of the House Building Finance Corporation (HBFC) has been finalized.

Approval will be sought from the Privatisation Board and the Cabinet Committee on Privatisation.

The secretary further informed that the bidder interested in buying HBCF has agreed to the terms while the minimum price will be set by the board and the cabinet committee on privatization.

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