PIA privatization facing difficulties as bidders disagree on accrued taxes and dues
The privatization of Pakistan
International Airlines (PIA) has hit a major setback after potential bidders
declined to take responsibility for the airline’s outstanding taxes and dues
owed to government institutions.
According to official sources,
companies interested in acquiring PIA have rejected the inclusion of
substantial liabilities — including unpaid taxes to the Federal Board of Revenue (FBR) and dues owed
to the Civil Aviation Authority (CAA)
— as part of the privatization terms. This dispute has slowed the process and
raised uncertainty about the next steps in the government’s divestment plan.
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of flag carriers in subcontinent: Challenges and Opportunities
PIA, which has faced persistent
financial losses for years, was slated for privatization to attract investment,
improve efficiency, and reduce the fiscal burden on the national exchequer.
However, the airline’s heavy debt load and long-standing liabilities have made
the deal less appealing to investors, who are willing to inject capital but
unwilling to inherit past financial obligations.
Analysts warn that further delays in
privatization could prolong PIA’s financial struggles, limit service
improvements, and increase the strain on the government budget.
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Commission suggests tightening of criteria for PIA bidders
A successful transfer to private management is seen as crucial for revitalizing the national carrier, enhancing operational efficiency, and restoring public confidence. The government is expected to hold fresh consultations with stakeholders to find a viable path forward, with further developments anticipated in the coming weeks.
Source: Bloom Pakistan