The Federal Board of Revenue (FBR) has granted income tax exemption to Pakistan International Airlines Corporation Limited on default surcharge and penalties linked to the current income tax liabilities amounting to Rs. 8.765 billion.
The exemption was issued through S.R.O. 799(I)/2026 on Tuesday. According to the notification, the exemption has been granted under Section 183 of the Income Tax Ordinance, 2001, following a federal cabinet decision dated December 31, 2025.
The FBR said the relief is aimed at facilitating the successful completion of the divestment process of PIACL to the successful bidder and ensuring timely execution of the bid documents and related terms.
Under the conditions of the exemption, PIACL’s current tax liabilities of Rs. 8.765 billion as of June 30, 2025 will have to be paid to the FBR within four years after the first completion date defined in the Share Purchase and Subscription Agreement between the government and the successful bidders.
The repayment plan includes a one year grace period, after which the liabilities will be paid in equal annual installments.
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