PIA set for debt-free privatisation with IMF aid for aircraft purchases

• IMF waives taxes, shifts liabilities to aid PIA sale.
• European flights resumption strengthens privatisation outlook.
• Privatisation to restore PIA’s competitiveness and efficiency.

ISLAMABAD: Pakistan International Airlines (PIA) is set to be privatised free of its existing liabilities in a bid to enhance its appeal to potential investors, The News reported quoting Federal Privatisation Minister Abdul Aleem Khan on Sunday.

The minister, while making the announcement, reaffirmed the government’s determination to address the long-standing challenges that have hindered PIA’s privatisation. 

“Various issues impeding the privatisation of PIA have been resolved, and the remaining steps will be finalised soon,” he said.

Among the key developments, the minister revealed, the International Monetary Fund (IMF) had agreed to two significant conditions to facilitate the airline’s privatisation. 

These include the removal of 8% general sales tax on the purchase of new aircraft and the transfer of PIA’s accumulated losses to a holding company. 

"Under the new terms, PIA’s liabilities and old dues will be removed, ensuring that the airline is privatised without any financial baggage," Khan said. This move will make PIA a more attractive and lucrative investment opportunity for potential buyers. 

The minister also expressed optimism about PIA’s resumption of flights to Europe, calling it a major milestone. The restart of European operations signals improved credibility and paves the way for further expansions, including potential routes to the United Kingdom and the United States, he said. 

Khan assured that the privatisation process is moving swiftly, and he expects significant progress soon. He believes that handing over PIA to the private sector will restore its operational efficiency and market competitiveness.

He welcomed the resumption of PIA flights to Europe, calling it a significant step toward restoring public confidence in the national flag carrier.

"This is a very welcome development, as people are now confident they will soon be able to travel to Europe via PIA," he said. The minister said that this milestone would also strengthen the airline’s privatisation prospects.

He expressed optimism that PIA might soon resume operations to the United Kingdom and the United States, further enhancing its credibility.

These developments will improve PIA’s reputation and enable it to be marketed as an attractive entity for privatisation, he added.