Islamabad: The Privatisation Commission disclosed that Pakistan International Airlines Corporation Limited (PIACL) spent Rs 28 billion in taxes collected on behalf of the Federal Board of Revenue (FBR) for its operational needs.
Senate Committee Reviews PIA Privatisation Progress
The revelation emerged during a meeting of the Senate Standing Committee on Privatisation, chaired by Senator Afnan Ullah Khan. Officials briefed the committee on the ongoing privatisation of PIA, the Roosevelt Hotel in New York, and upcoming airport management contracts.
They said the PIA privatisation process was progressing and expected to conclude by December 2025. “We are hopeful of receiving a strong bid this time,” officials noted, adding that four consortia were currently competing for the airline.
Precision Engineering Complex to Move to PAF
The Commission also shared that the Precision Engineering Complex, which produces Boeing aircraft parts since the 1980s, would be transferred from PIA to the Pakistan Air Force (PAF). However, the complex remains in financial trouble, earning Rs390 million annually while spending over Rs850 million.
UAE G2G Deal Under Consideration
Committee members expressed concern over the lack of interest from international airlines in PIA’s privatisation. Officials said a government-to-government (G2G) deal with the United Arab Emirates (UAE) was being considered for land-side services at Islamabad International Airport. They added that a Turkish company had withdrawn over a revenue-sharing dispute.
Roosevelt Hotel Adviser Appointment Underway
Regarding the Roosevelt Hotel, officials said the appointment of a new financial adviser was in progress. The committee also praised the successful privatisation of the First Women Bank and urged authorities to resolve pension grievances of retired PIA employees quickly.
