The International Monetary Fund (IMF) has approved the waiver of the 18 percent sales tax on leased aircraft for Pakistan International Airlines (PIA).
This decision will likely remove all hurdles in the privatization process for the loss-making national flag carrier, reported ExpressTribune. The process has remained in jeopardy ever since a real estate developer in October 2024 bid just Rs. 10 billion for a 60 percent stake.
Deputy Prime Minister Ishaq Dar was briefed on the latest developments during a recent meeting and government officials confirmed that the IMF’s approval would allow PIA’s prospective investors to avoid the sales tax on new aircraft. The IMF’s decision follows earlier demands by bidders to also write off Rs. 45 billion in liabilities.
PIA’s restructuring, which includes transferring Rs. 623 billion in liabilities to a holding company, could now proceed without delay. The finance ministry also briefed the IMF on issues at the international level caused by the sales tax and the need to attract foreign investment for PIA’s revival.
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