ISLAMABAD: The National Assembly Standing Committee on Privatisation was informed on Thursday that the International Monitory Fund (IMF) has agreed to the removal of 18 per cent GST on the purchase of new aircraft and cleaning of Rs45 billion negative equity of Pakistan International Airline Company Limited (PIACL).

A meeting of the committee was further informed that it was decided to capitalise on positive momentum generated by IMF’s consent on critical tasks, opening up of European routes and to avoid further loss to national exchequer; it was decided to go for fresh expression of interest (EoI) at the earliest.

It has been decided that the losses of the national flag carrier will be transferred to the Holding Company, making PIA free of liabilities and attractive and lucrative for investors who had been otherwise shy in acquiring the national flag carrier due to the losses.

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The committee meeting, chaired by Muham­mad Farooq Sattar, appoi­nted a sub-committee under the convenorship of MNA Seher Kamran to look into the reasons for the decline of PIACL. The sub-committee, comprising Khawaja Sheraz Mehmood, Saba Sadiq and Asia Naz Tanoli, has been asked to submit its report within 30 days.

The committee discussed the Privati­sation Commission (Amend­ment) Bill, 2024, and decided to defer it.

Pakistan International Airlines remains on the top of the list of 24 public sector entities included in the government’s privatisation programme (2024-29).

On the issue of House Building Finance Corpora­tion (HBFC), the secretary of privatisation commission informed the committee that agreement on the privatisation of the corporation has been finalised, and approval will be sought from the privatisation board and the cabinet committee on privatisation.

The secretary further informed that the bidder interested in buying HBCF has agreed to the terms while the minimum price will be set by the board and the cabinet committee on privatisation.

Published in Dawn, January 10th, 2025