ISLAMABAD:
The National Assembly Standing Committee on Privatization on Wednesday approved the Public-Private Partnership Authority (Amendment) Bill, 2026 while reviewing the progress of Pakistan International Airlines (PIA) privatization and discussing tax incentives for the aviation sector.
The meeting, led by Dr. Farooq Sattar, was reinstated after a gap caused by the government’s austerity campaign. During the meeting, privatization advisor Dr. Muhammad Ali committee that the government had given exemption from general sales tax (GST) on aircraft and spare parts to PIA.
He said other airlines would also become eligible for the GST exemption from next year.
Dr. Sattar said that all airlines should have 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 the removal of GST. “We abolished GST for PIA for one year,” he said.
Briefing the committee, the secretary also said meetings were held in the Special Investment Facilitation Council (SIFC) regarding the utilization of the government’s land bank.
Dr. Sattar noted that several state-owned entities possessed valuable but underutilized assets. “There are many institutions that have assets that remain unused despite being valuable,” he noted.
Dr. Discussing Pakistan Reinsurance Company Limited (PRCL), Muhammad Ali said that the company had liabilities of Rs75 billion while its assets stood at Rs25 billion. He said that the capital of the company was also Rs.25 billion and its privatization would be done on the basis of this valuation.
The advisor also briefed the committee on the implementation of the PIA privatization agreement. He said all commitments under the sales agreement were implemented. According to Dr. Ali, the government will receive a total of Rs 55 billion from the sale of 100 percent of PIA’s shares.
He said the government had already received Rs 10 billion, while the remaining Rs 45 billion would be paid after the transfer of a 25 percent stake. The adviser said PIA’s management had invested Rs 80 billion in the company and planned to inject another Rs 45 billion.
Responding to concerns raised by PPP MNA Sehar Kamran regarding the airline’s fleet, Dr. Muhammad Ali that it was not possible to acquire new aircraft within a few weeks.
He informed the panel that PIA’s total assets as at As of June 30, 2025, it was valued at Rs191.534 billion, while its total liabilities stood at Rs182.430 billion, including Rs30.342 billion in employee pension liabilities.
