The National Assembly’s Standing Committee on Privatisation was informed that the International Monetary Fund (IMF) agreed to clear Rs45 billion in negative equity for Pakistan International Airlines Company Limited (PIACL).
According to an official statement from the National Assembly, the committee was also apprised that the IMF also approved the removal of 18% goods and services tax (GST) on aircraft.
The committee held its 5th meeting, chaired by MNA Muhammad Farooq Sattar, at the Parliament House. Discussions included the ‘Privatisation Commission (Amendment) Bill, 2024,’ which was deferred for further review.
The committee was informed that this development, combined with the reopening of European routes, would help mitigate losses and improve the national carrier’s financial outlook. “It was decided to go for fresh Expression of Interest (EOI) at the earliest,” the statement read.
To investigate PIACL’s financial challenges, a sub-committee was formed under MNA Sehar Kamran, with members Khawaja Sheraz Mehmood, Saba Sadiq, and Asia Naz Tanoli. The sub-committee is expected to submit its findings within 30 days.
Last month, PIA resumed operations of a long-grounded ATR aircraft to strengthen flights to regional destinations, including Gilgit, Sukkur, Turbat, and Gwadar. Around the same time, PIA added its 11th Airbus 320 to its operational fleet with upgraded engines to improve its network and services.
PIA has also introduced in-flight internet on domestic flights and announced plans to resume flights to Europe. The EU lifted its 2020 ban on PIA after compliance with international aviation standards was confirmed. The first flight to Paris, scheduled for January 10, has received approval, and bookings began on December 9.
The ban had cost PIA Rs40 billion ($144 million) annually. Resuming European routes is seen as a critical step to strengthening PIA’s privatisation case, which faltered earlier this year when Blue World City consortium, the sole bidder, offered Rs10 billion for a 60% stake—well below the government’s expectation of Rs85.03 billion.
The Ministry of Privatisation now plans to restart the privatisation process, with a new financial advisor to be hired to guide the efforts.
