PIA, Islamabad airport to be privatised by November

ISLAMABAD: Finance Minister Mohammad Aurangzeb announced that the privatisaiton fo Pakistan International Airlines (PIA) and the Islamabad International Airport is set to be finalised by November.

The decision comes after a delay aimed at ensuring thorough security of bids from potential private sector investors.

The government has been under pressure t revitalize the PIA, which has been costing the national exchequer billions in losses for years now.

The national air carrier has been struggling with mounting losses in billions, operational disruptions and a tarnished reputation. This lead to calls for privatization as a means to restore its efficiency and repute.

The airline has been a financial pit for the cash-strapped Pakistan since the 90s, with incidents of worst failures in aviation history.

Aurangzeb said talked about the common issues plaguing taxation, electricity and public sector institutions. He identified leakage, theft, and corruption as the root causes fo problems in the stated sectors.

He said that was an  urgent need for reform to address the glaring shortcomings and systematic flaws. He pointed out that the tax burden due to the unprofitable sectors was mostly on the salaried class and the industrial sector.

Aurangzeb called for a more equitable tax system, and urged these who have not been paying taxes to file it immediately.

The finance minister said that the government planed to expand the tax net to include sectors such as real estate, retail, wholesale and agriculture. All these sectors have traditionally been under-reported in terms of tax collection.

The current govemrent adopted an aggressive strategy to broaden its tax base, as part of a broader strategy to increase revenue collection and reduced reliance on external borrowing.

Pakistan has faced huge economic issues, include high inflation, deprecating currency and a growing fiscal deficit.

Expanding the tax base is seen as essential for achieving financial sustianbiltiy and improving public services.