Government assures IMF of PIA privatisation “by June” this year

ISLAMABAD: The Pakistan government assured the International Monetary Fund (IMF) of its commitment to privatise the national carrier Pakistan International Airlines (PIA) by June of this year on Friday.

According to reports, the government assured the financial institute of various economic reforms outlined in their agreement.

Reports indicate that the government plans to sell 51 per cent of PIA’s shares as part of the PIA privatisation process. There is also a push for greater transparency, with the government favouring the disclosure of asset information concerning cabinet members.

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However, the IMF report highlights delays in implementing certain reforms. In particular, under the caretaker government. For instance, the Trader-Friendly Scheme was reportedly launched three months behind schedule, starting on April 1.

The government also pledged to release supplementary grants only after obtaining approval from the National Assembly (NA). It also assured the IMF that it will not interfere in the currency market.

In accordance with IMF recommendations, the government expressed support for increasing electricity and gas prices to control revolving credit and stabilise the economy.

Despite these measures, there has not been an adjustment to the tax target of Rs9,415 billion for the current financial year. However, the government acknowledged that additional taxation may be necessary in case of a shortfall in potential tax revenue.

To combat corruption, the government said it planned to publish an anti-corruption framework aimed at ‘preventing’ “corrupt practices”.

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It also said that cooperation with banks to prevent money laundering will be intensified. The banks will gain access to the assets of civil servants.