- The IMF waives taxes and shifts debts to help sell PIA.
- The resumption of European flights strengthens the prospects of privatization.
- Privatization to restore PIA’s competitiveness and efficiency.
ISLAMABAD: Pakistan International Airlines (PIA) is set to be privatized, freed from its existing obligations, in a bid to enhance its appeal to potential investors, News Federal Minister for Privatization Abdul Aleem Khan reported on Sunday.
The minister, in making the announcement, reaffirmed the government’s resolve to address the long-standing challenges that have hampered the privatization of PIA.
“Various issues hampering the privatization of PIA have been resolved and the remaining steps will be finalized soon,” he said.
Among key developments, the minister revealed, the International Monetary Fund (IMF) agreed to two important conditions to facilitate the privatization of the airline.
These include the removal of the 8% general sales tax on the purchase of new aircraft and the transfer of PIA’s accumulated losses to a holding company.
“Under the new terms, debts and old dues of PIA will be waived, thereby ensuring that the airline will be privatized without any financial baggage,” Khan said. The move will make PIA a more attractive and lucrative investment opportunity for potential buyers.
The minister also expressed optimism about PIA’s resumption of flights to Europe, calling it a major milestone. The restart of European operations demonstrates increased credibility and paves the way for further expansions, including potential routes to the United Kingdom and the United States, he said.
Khan assured that the privatization process is moving quickly and he expects significant progress soon. He believes that handing over PIA to the private sector will restore its operational efficiency and competitiveness in the market.
He welcomed the resumption of PIA flights to Europe, terming it an important step towards restoring public confidence in the national airline.
“This is a very welcome development as people are now confident that they will soon be able to travel to Europe via PIA,” he said. The minister said the step would also strengthen the airline’s privatization prospects.
He expressed optimism that PIA would soon resume operations in the UK and the US, thereby boosting its credibility.
These developments will improve PIA’s reputation and enable it to be marketed as an attractive entity for privatization, he added.