ISLAMABAD:
The National Assembly Standing Committee on Defense examined the financial challenges faced by the airline industry, including PIA, with a special focus on the current tax regime.
The committee, which met under the chairmanship of Fateh Ullah Khan Miankhel, recognized the efforts of the Ministry of Defense in organizing a transparent tender process for PIA.
MEPs noted that although ticket prices have not increased significantly in dollar terms, the imposition of taxes, including sales taxes, has placed a considerable burden on airlines.
It was agreed that an in-depth study on the tax regime and its impact on the aviation sector would be prepared and presented to the Minister of Defense and then to the Prime Minister.
The NA panel also appreciated the statement of the new owner for taking care of the employees as well as improving flight operations in the near future.
The committee, while reviewing the status of implementation of previous recommendations regarding private airlines and key operational issues in the aviation sector, discussed issues related to flight regularity, cancellations and delays, fare structures and fleet resilience, with particular concern expressed regarding high domestic air fares and their impact on passengers.
The committee was informed that the Arif Habib consortium had successfully won the Pakistan International Airlines (PIA) tender for Rs135 billion.
The role of the Civil Aviation Authority and airline operators in ensuring quality of services, consumer protection and continuity of domestic operations alongside international expansion was highlighted. The committee also deliberated on public grievances and highlighted the need for improved monitoring and regulatory oversight.
The president was also directed to organize a meeting with the Minister of Finance and relevant authorities to discuss possible tax rationalization and brief the committee on the results.
Issues related to the aviation sector as a whole were also discussed, including medical facilities at aviation facilities, radiation concerns and the need to address the shortage of trained and qualified personnel.
The committee decided to undertake visits to affected ground facilities as part of its oversight role to assess conditions first-hand and recommend corrective action. The treatment of previous parliamentary forums and their recommendations were appreciated by members.
The committee also deliberated on the privatization of PIA, including the treatment of debts and the proposed use of proceeds for debt servicing and social sector development.
Project implementation challenges were reviewed with emphasis on prioritization of ECNEC approved projects in the defense and aviation sectors. The Ministry of Planning and the Ministry of Defense have been directed to review ongoing projects including strategic airports and the National Aviation Safety Academy, provide updates on the utilization of funds and seek timely release of required allocations.
The committee further decided to consider and approve the pending reports of the subcommittee in the next meeting and follow up with the Prime Minister’s Office and the Ministry of Finance regarding relaxation of recruitment rules for the armed forces and police, with the results to be shared with the concerned ministries.
