Shafaqna Pakistan: The federal government has provided major financial relief to Pakistan International Airlines (PIA) by waiving billions of rupees in tax penalties and surcharges to support its privatisation process.
According to a notification issued by the Federal Board of Revenue (FBR), default surcharges and penalties worth Rs8.76 billion have been written off. The move is intended to facilitate the airline’s privatisation and ensure timely completion of agreements with the successful bidder.
The notification added that the exemption has been granted under Section 183 of the Income Tax Ordinance, 2001, using the federal government’s discretionary powers, and will be subject to certain conditions.
Under the revised arrangement, PIA will be required to clear its outstanding principal tax liabilities – exceeding Rs8.76 billion as of 30 June 2025 – over a period of four years. A one-year grace period will be provided after the completion of the share purchase agreement, following which the amount must be paid in equal annual instalments to the FBR.
Officials said the decision is part of broader efforts to make the national carrier more attractive to investors and to remove financial hurdles that could delay the privatisation process.
Source: Dunya News
