IMF Approves Removal of 18% GST on New Aircraft, PIACL’s Negative Equity to Be Cleared
ISLAMABAD: The National Assembly Standing Committee on Privatisation was informed on Thursday that the International Monetary Fund (IMF) has agreed to eliminate the 18% GST on new aircraft purchases and to clear Pakistan International Airline Company Limited’s (PIACL) Rs45 billion negative equity.
The committee was also briefed on plans to capitalize on the positive momentum from the IMF’s approval, including the opening of European routes and initiating a new expression of interest (EoI) for PIACL to prevent further losses.
In a significant move, PIACL’s losses will be transferred to the Holding Company, making the airline more appealing to investors who had previously avoided it due to its financial struggles.
Chaired by Muhammad Farooq Sattar, the committee formed a sub-committee, led by MNA Seher Kamran, to investigate the reasons behind PIACL’s decline. The sub-committee is tasked with submitting its findings within 30 days.
The committee also discussed the Privatisation Commission (Amendment) Bill, 2024, and decided to defer it. PIACL remains a top priority in the governmentโs 2024-29 privatisation program.
On the House Building Finance Corporation (HBFC) front, the secretary of the Privatisation Commission revealed that an agreement on its privatisation has been reached, with approval pending from the Privatisation Board and the Cabinet Committee on Privatisation.
