Business Desk 
Dec 11, 2024
With Pakistan International Airlines (PIA) reeling with obstacles impeding its privatisation, a move by the International Monetary Fund (IMF) has cleared the path.
The IMF has approved the waiver of the 18% sales tax on leased aircraft owned by the country's national flag carrier, paving the way for a smooth privatisation process.
The tax waiver from the global financial institution is expected to set aside the hurdles the loss-making national flag carrier was facing, as noted by ProPakistani.
The PIA privatisation has been dangling since the only bid was made by a real estate developer in October 2024, offering Rs10 billion for a 60% stake which was deemed undervalued.
Deputy Prime Minister Ishaq Dar was also briefed about the tax relief granted by the IMF as well as the latest developments in this regard during a recent meeting.
During the meeting, government officials confirmed that this remarkable development will let PIA’s potential investors evade the sales tax on new aircraft. The IMF’s decision comes on the heels of demands made earlier by bidders to write off Rs45 billion in liabilities.
