Pakistan government makes another bid to privatise PIA
South Asia | Pakistan: According to Dawn, the National Assembly Standing Committee on Privatisation was informed by the government on Monday (Feb 3) that the GST has been removed from the purchase of new aircraft in an effort to attract investors.
The Pakistan government is making another bit to sell the national airline, Pakistan International Airlines (PIA), reported Dawn.
Previous efforts to privatise the airline saw a sole investor with a bid of $36 million, much lower than the expectations of officials. The lack of interest among the buyers was due to various reasons, including the 18 per cent general sales tax (GST) on the purchase.
According to Dawn, the National Assembly Standing Committee on Privatisation was informed by the government on Monday (Feb 3) that the GST has been removed from the purchase of new aircraft in an effort to attract investors.
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“The Privatisation Commission chairman informed the committee that the IMF agreed to remove the tax after the government presented its concerns,” reported Dawn.
PIA’s liabilities amounted to $162.3 million as per the data given to the standing committee.
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The bidding process does not include the non-core assets of the airline, and separate policies would be drawn out for them in an effort to formulate a mechanism to ensure the airline’s financial burden does not hinder potential buyers.
Two to three options were proposed to the Cabinet Committee on Privatisation (CCoP) by the policy consultant, one of which will be adopted for the non-core assets.
The committee also held talks about the Privatisation Commission (Amendment) Bill 2024 and questioned some of its provisions. It also clarified from the Ministry of Law whether the prime minister had the authority to make the decisions on privatisation instead of the cabinet and asked the ministry to present relevant details in the next meeting.
Development of airports
According to Dawn, the Pakistan Airports Authority (PAA) has announced plans to develop and modernise three airports. It also said that a new greenfield would be constructed at the DI Khan airport.
Along with national consultants, international experts from Japan and Switzerland have also been engaged for the projects, a PAA spokesperson said in a statement on Monday (Feb 3).
(With inputs from agencies)
