ISLAMABAD:
The Standing Committee on Privatization of the National Assembly 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 gap 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) for aircraft and spare parts for PIA.
He said other airlines would also be eligible for GST exemption from next year.
Dr Sattar said all airlines should be given a level playing field and announced that the committee would write to the prime minister and 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 abolished GST for PIA for one year,” he said.
Briefing the committee, the secretary also said that Special Investment Facilitation Council (SIFC) meetings were being held on utilization of the government land bank.
Dr. Sattar observed that several state entities owned valuable but underutilized assets. “There are many institutions that have assets that are not used despite being valuable,” he noted.
Talking about Pakistan Reinsurance Company Limited (PRCL), Dr. Muhammad Ali said that the company had liabilities of Rs 75 billion, while its assets amounted to Rs 25 billion. He said the capital of the company was also Rs 25 billion and its privatization would be carried out based on that valuation.
The advisor also briefed the committee on the implementation of the PIA privatization agreement. He said all commitments made under the sales agreement were being implemented. According to Dr. Ali, the government will receive a total of Rs 55 billion from the sale of 100 percent of PIA shares.
He said the government had already received Rs 10 billion, while the remaining Rs 45 billion would be paid after transfer of 25 per cent 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 MNA Sehar Kamran regarding the airline’s fleet, Dr Muhammad Ali said it was not possible to procure new aircraft in a few weeks.
He informed the panel that as on June 30, 2025, PIA’s total assets were valued at Rs 191,534 billion, while its total liabilities amounted to Rs 182,430 billion, including Rs 30,342 billion in employee pension liabilities.
