PIA privatisation deadline shortened by four months to June 2025

ISLAMABAD: Prime Minister Shehbaz Sharif has moved up the deadline for the financial closure and transfer of Pakistan International Airlines (PIA) to the private sector to June 1, 2025, four months earlier than the previously planned October 2025 date.

This decision was made during a review of PIA’s privatisation roadmap.

The privatisation is being undertaken with the support of the International Monetary Fund (IMF), which has agreed to consider waiving the 18% Goods and Services Tax (GST) to incentivise private investment in new aircraft post-privatisation.

IMF agrees to remove 18pc GST on new aircraft to facilitate PIA privatisation

The Privatisation Division has been instructed to expedite the process and adjust timelines accordingly. PIA currently holds liabilities of approximately Rs45 billion, including significant tax debts to the Federal Board of Revenue (FBR) and dues to the Civil Aviation Authority (CAA), along with pension obligations.

It has been clarified that PIA’s non-core assets will be handled separately from the bidding process for the airline itself. The government is developing a specific policy for these assets and has engaged a consultant to present options to the Cabinet Committee on Privatisation (CCoP).

The Prime Minister has also directed relevant Ministries involved in the privatization of State-Owned Entities (SOEs) to establish a legal expert pool, this is to ensure any legal issues that may arise during the process are quickly addressed, and to keep the privatization program on schedule.