ISLAMABAD:
The Standing Committee on Defense of the National Assembly has examined the financial challenges facing the airline industry, including PIA, with special attention to the existing tax regime.
The committee, which met with Fateh Ullah Khan Miankhel as chairman, acknowledged the efforts of the Ministry of Defense in carrying out a transparent PIA bidding process.
Members noted that while ticket prices have not increased significantly in dollar terms, the imposition of taxes, including sales tax, has placed a substantial burden on airlines.
It was agreed that a comprehensive study on the tax regime and its impact on the aviation sector would be prepared and presented to the Minister of Defense and subsequently to the Prime Minister.
The NA panel also appreciated the statement of the new owner for taking care of the employees and improving flight operations in the near future.
The committee, while reviewing the status of implementation of earlier recommendations relating to private airlines and key operational issues in the aviation sector, discussed issues related to flight regularity, cancellations and delays, fare structures and fleet resilience, expressing particular concern over high domestic air fares and their impact on passengers.
The committee was informed that the Arif Habib consortium had successfully won the tender of Pakistan International Airlines (PIA) for Rs 135 billion.
The role of the Civil Aviation Authority and air operators in ensuring quality of service, consumer protection and continuity of domestic operations along with international expansion was emphasized. The committee also deliberated on public complaints and highlighted the need to improve regulatory monitoring and oversight.
The President was also tasked with organizing a meeting with the Minister of Finance and relevant authorities to discuss a possible rationalization of taxes and inform the committee of the results.
Issues relating to the wider aviation sector 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 conduct visits to relevant onshore facilities as part of its oversight role to assess conditions first-hand and recommend corrective measures. Members appreciated the handling of previous parliamentary forums and their recommendations.
The committee also deliberated on the privatization of PIA, including the treatment of liabilities and the proposed utilization of the proceeds for debt servicing and social sector development.
Project implementation challenges were reviewed, with emphasis on prioritizing ECNEC-approved projects in the defense and aviation sectors. The Ministry of Planning and the Ministry of Defense were directed to review ongoing projects, including strategic airports and the National Aviation Security Academy, provide updates on the utilization of funds and seek timely release of required allocations.
The committee further decided to review and approve the pending reports of the sub-committee in the next meeting and follow up with the Prime Minister’s Office and the Ministry of Finance regarding the relaxation of recruitment rules for the armed forces and police, and the results will be shared with the concerned ministries.
