PIA to be handed over to new owners this month

Ali said the national flag carrier’s operating rights in various countries had to be transferred to the privatised operator, requiring several regulatory processes, which had now been completed. The local law relating to PIA’s conversion into a public limited entity also stood amended. Responding to a question, he said PIA’s decision-making remained in the public sector for now, but under the sale and purchase agreement, the private owners were fully on board on all operational and financial decisions. He said the exemption of equipment, accessories and lease and purchase of aircraft from taxes for 15 years after privatisation had been cleared by the International Monetary Fund to facilitate the transaction and given legal cover in the Finance Bill 2026-27. Ali conceded that the same tax treatment was not currently available to other airlines because the IMF’s consent was limited to PIA. For other operators, the government would again take up the matter with the Fund for equitable treatment, he said. Interestingly, the IMF has consistently demanded removal of policy distortions to improve ease of doing business, but in this case allowed a major policy distortion to the disadvantage of other airlines operating in and fro