PIA has been earmarked for debt-free privatization with IMF assistance for aircraft purchases

• IMF waives taxes, shifts liabilities to help PIA sale.
• The resumption of European flights boosts privatization prospects.
• Privatization to restore PIA’s competitiveness and efficiency.

ISLAMABAD: Pakistan International Airlines (PIA) is set to be privatized without its existing liabilities in a bid to boost its appeal to potential investors, The News he quoted Federal Privatization Minister Abdul Aleem Khan as saying on Sunday.

The minister, during the announcement, reaffirmed the government’s determination to address the long-standing challenges that have hindered the privatization of PIA.

“Various issues holding back the privatization of PIA have been resolved and the remaining steps will be finalized soon,” he said.

Among the key developments, the minister revealed, the International Monetary Fund (IMF) had agreed to two important conditions to facilitate the privatization of the airline.

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

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

The minister also expressed optimism over the resumption of PIA flights to Europe, terming it a major milestone. The restart of European operations signals improved reliability and paves the way for further expansions, including possible routes to the United Kingdom and the United States, he said.

Khan assured that the privatization process is moving fast and he expects significant progress soon. He believes 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 an important step towards restoring public confidence in the national carrier.

“This is a very welcome development as people are now confident that they will soon be able to travel to Europe through PIA,” he said. The minister said this milestone will also boost the airline’s privatization prospects.

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

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