PIA to Receive 15-Year Tax Exemption on Aircraft and Spare Parts Imports
The National Assembly Standing Committee on Finance has approved a proposal to grant Pakistan International Airlines (PIA) a 15-year tax exemption on the import of aircraft and spare parts under the airline’s ongoing privatization plan.
Officials briefed the committee that all bidders participating in the privatization process had requested relief on certain import duties to make operations more financially viable. The approved package includes tax exemptions across nine categories of imported aviation-related items.
During the meeting, lawmakers reviewed the duration and scope of the proposed relief. The Privatization Commission explained that the incentive structure had already been agreed upon by the government and relevant stakeholders as part of the broader reform and privatization framework.
Committee members noted that removing the exemptions could affect investor interest in the privatization process. Finance officials also cautioned that changes to the agreed terms might require further consultations with international financial partners.
The Finance Ministry said concerns raised by other airlines regarding similar incentives would be discussed during ongoing negotiations with international institutions as part of the broader economic reform program.
