IMF removes GST on aircraft for PIA

The International Monetary Fund (IMF) has approved the removal of the 18% GST on aircraft for Pakistan International Airlines Company Limited (PIACL), a move aimed at improving its financial health. This decision is expected to clean up Rs45 billion of PIACL’s negative equity.

The development was discussed during the fifth meeting of the National Assembly Standing Committee on Privatisation, chaired by Dr. Farooq Sattar, a senior leader of the Muttahida Qaumi Movement-Pakistan (MQM-P).

The committee also reviewed the Privatisation Commission (Amendment) Bill, 2024, and deferred it for future discussion.

To capitalize on the IMF’s decision, the committee emphasized the importance of leveraging European routes to reduce losses and protect the national exchequer. It further recommended issuing a fresh Expression of Interest (EOI) as soon as possible.

The meeting was attended by several members of the National Assembly, including Muhammad Usman Awaisi, Asia Naz Tanoli, Saba Sadiq, and Nazir Ahmed Bhugio, along with officials from the privatisation ministry and State Life Insurance Corporation of Pakistan (SLICP). Two MNAs, Sehar Kamran and Arshad Abdullah Vohra, participated virtually.

A sub-committee was formed under MNA Sehar Kamran to evaluate PIACL’s financial decline. The team, including Khawaja Sheraz Mehmood, Saba Sadiq, and Asia Naz Tanoli, was tasked to present its findings to the Standing Committee within 30 days.

This initiative reflects the government’s commitment to restructuring PIACL and improving its operational efficiency.

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