Adviser to the Prime Minister on Privatisation Muhammad Ali has said that the privatisation of Pakistan International Airlines (PIA) will take place on December 23, while all related matters will be finalised by December 19.
Briefing the Senate Standing Committee on Privatisation, the Privatisation Commission Secretary Usman Bajwa said that the buyer of PIA will not be required to pay sales tax on the purchase of new aircraft.
It was stated that, unlike the previous attempt, the investor will not be required to clear PIA’s outstanding liabilities of Rs33 billion. The buyer will also not pay Federal Board of Revenue (FBR) dues amounting to Rs26.6 billion.
Bajwa said that the successful bidder for PIA will also be exempted from paying Rs7 billion owed to Pakistan Civil Aviation Authority. Under the privatisation plan, between 51 per cent and 100 per cent shares of PIA will be sold.
He said that during the previous privatisation attempt, sales tax examption from the IMF could not be obtained in time. He said that PIA’s routes to the United Kingdom and Europe have now been restored.
He further said that final commercial terms with investors will be settled by tonight, while bidders will be required to submit a bid security of Rs2 billion to participate in the process. Immediately after privatisation, an investment of Rs80 billion will have to be made in PIA.
Earlier, Prime Minister Shehbaz Sharif said that transparency and merit will be given top priority in the privatisation of PIA, adding that the bidding process will be broadcast live on television across the country to ensure complete transparency.
The prime minister made these remarks during a meeting with business figures and representatives of various companies participating in the privatisation of PIA.
He said the privatisation process will be carried out smoothly and swiftly to restore PIA’s lost stature and align the national airline with modern requirements.
Expressing optimism, the prime minister said that PIA would soon live up once again to its past slogan, “Great People to Fly With.”
He said transparency had been ensured throughout the privatisation process and that bidding would take place on December 23 and would be broadcast live on all media channels.
The prime minister said that the restoration of PIA’s international flights would provide major relief to overseas Pakistanis and that modernising the national airline was essential for the growth of the country’s tourism sector.
He expressed confidence that whichever party assumes responsibility after the bidding process would dedicate its full energies to restoring and developing the national airline.
Participants praised the government, terming the entire privatisation process professional, transparent and merit-based.
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