Pakistan International Airlines to Transfer to New Owners This Month Amid Privatization Drive

Pakistan International Airlines (PIA) will be fully transferred to its new private owners before the end of June, completing a privatization deal delayed since last December. Muhammad Ali, Prime Minister’s Adviser on Privatisation, confirmed that all required local and international regulatory approvals are now in place. These approvals were crucial for transferring PIA's operating rights in various countries and amending local laws related to its conversion into a public limited entity. While PIA's decision-making remains in the public sector for now, the private owners are fully involved in operational and financial decisions as per the sale and purchase agreement. The International Monetary Fund (IMF) has approved a 15-year tax exemption on aircraft equipment, accessories, and leases for PIA post-privatization, a move intended to facilitate the transaction. However, this special tax treatment is currently limited to PIA, and the government plans to discuss extending similar benefits to other airlines with the IMF. Parliamentary committees have raised concerns about this discriminatory treatment, advocating for a fair and equitable environment for all operators. In parallel, Islamabad International Airport is slated for privatization during the fiscal year 2026-27, with the Asian Development Bank selected as the transaction adviser. The process to hire financial advisers for outsourcing operations at Karachi and Lahore international airports will commence immediately.

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It will be handed over to the new buyers by the end of this month.