Overview
- Potential buyers refused to assume Rs 28 billion in tax dues to the FBR and Rs 7 billion owed to the CAA, insisting the government clear these liabilities before any deal.
- The Privatisation Commission told a Senate panel that due diligence is nearly finished, four consortia are engaged, and formal bidding is slated to start next month.
- To raise funds to settle debts, the government plans to sell PIA-owned hotels in New York and Paris, expecting proceeds exceeding Rs 500 billion, with any Roosevelt Hotel redevelopment subject to U.S. approvals and a new advisor to be hired next month.
- The government has sweetened terms with full divestment, removal of sales tax on leased aircraft, limited legal and tax protections, and transfer of roughly 80% of PIA’s debt to the state, a package linked to IMF programme goals.
- Officials cited operational hurdles including inadequate maintenance capacity and the need for major upgrades at Karachi and Lahore airports, while Islamabad airport landside services are being pursued via a UAE government-to-government arrangement after a Turkish firm declined the proposed structure.