ISLAMABAD:
The National Assembly Standing Committee on Privatization on Wednesday approved the Public-Private Partnership Authority (Amendment) Bill, 2026, while reviewing the progress of privatization of Pakistan International Airlines (PIA) and discussing tax incentives for the aviation sector.
The meeting, chaired by Dr Farooq Sattar, resumed after a hiatus caused by the government’s austerity drive. During the meeting, Privatization Advisor Dr. Muhammad Ali informed the committee that the government had granted exemption from General Sales Tax (GST) on aircraft and spare parts of PIA.
He said other airlines would also become eligible for GST exemption from next year.
Dr Sattar said all airlines should enjoy a level playing field and announced that the committee would write to the Prime Minister and the Finance Minister urging them to extend the GST exemption.
The privatization secretary told the committee that one of the key demands of the successful bidder during the PIA privatization process was removal of GST. “We have abolished GST for PIA for one year,” he said.
Addressing the committee, the secretary also said that meetings of the Special Investment Facilitation Council (SIFC) were underway regarding the utilization of government land bank.
Dr. Sattar observed that several public entities had valuable but underutilized assets. “Many institutions have assets that sit idle despite their value,” he noted.
About Pakistan Reinsurance Company Limited (PRCL), Dr. Muhammad Ali said that the company had liabilities of Rs75 billion, while its assets stood at Rs25 billion. He specified that the company’s capital also amounted to Rs25 billion and that its privatization would be carried out on the basis of this valuation.
The advisor also briefed the committee on the implementation of the PIA privatization deal. He said all commitments made under the sales contract were being implemented. According to Dr Ali, the government will receive a total of Rs55 billion from the sale of 100 percent of PIA’s shares.
He said the government had already received Rs10 billion, while the remaining Rs45 billion would be paid after transfer of 25 percent stake. The advisor said PIA management had invested Rs 80 billion in the company and planned to pump in another Rs 45 billion.
Responding to concerns raised by PPP MP Sehar Kamran regarding the airline’s fleet, Dr Muhammad Ali said it was not possible to acquire new aircraft within a few weeks.
He informed the panel that as of June 30, 2025, PIA’s total assets were valued at Rs 191.534 billion, while its total liabilities stood at Rs 182.430 billion, including Rs 30.342 billion towards employee pension liabilities.
