Prime Minister Shehbaz Sharif has extended the deadline for Pakistan International Airlines (PIA) privatisation to June 1, 2025, instead of the previously planned October timeline. The government is speeding up the process to ensure a smooth financial transition and successful transfer to private ownership.
To make the deal more attractive for investors, the International Monetary Fund (IMF) has agreed to waive the 18% General Sales Tax (GST) on new aircraft purchases. However, one of the biggest challenges remains PIA’s outstanding liabilities, which currently stand at Rs 45 billion. To ease the bidding process, the government has decided that non-core assets will not be included in the sale.
Legal experts and key government ministries are actively working to address any legal and financial obstacles to meet the new deadline. This accelerated push by the government highlights its commitment to restructuring state-owned enterprises and improving the efficiency of the aviation sector in Pakistan.
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