Pakistan’s privatisation minister, Abdul Aleem Khan, announced plans to auction Pakistan International Airlines (PIA) again, seeking an IMF-approved PKR26 bn tax exemption to attract buyers after the previous auction failed.
Key issues from the October auction included PIA’s old debts, existing tax obligations, and the Federal Board of Revenue’s refusal to waive the 18pc GST on new aircraft acquisition, which deterred potential bidders.
The government aims to make PIA more appealing by addressing its financial liabilities and hopes to attract bids from interested parties, particularly from investors in the Gulf region.
Khan emphasized that without a cleaned-up balance sheet, which includes resolving existing debts, it would be challenging to find buyers willing to invest in PIA, despite the airline’s potential for profitability on its lucrative routes.
