LAHORE: The privatization of Pakistan International Airlines (PIA), valued at approximately Rs 180 billion, has officially concluded with the transfer of shares to the new management team. Alongside this, a fresh board of directors has been established to lead the airline forward.
The new board members include Anwar Ali Hyder, Jehangir Paracha, Gohar Ejaz, Arif Habib, Fazal Sheikh, Aqeel Karim Dhedhi, and Farzana Feroz. Anwar Ali Hyder has been elected as the Chairman of PIA by the new board.
Meanwhile, members of a National Assembly parliamentary committee voiced concerns regarding a proposed tax exemption for PIA. The exemption in question pertains to customs duties on importing new aircraft and spare parts, a provision initially included in the privatization agreement. During a committee session, lawmakers debated the fairness and potential impacts of granting such relief.
Members recalled that the exemption was part of the privatization terms but questioned whether extending such benefits could distort competition within Pakistan’s aviation sector. Sharmila Faruqi, a PPP member, emphasized that if exemptions are granted to PIA, similar concessions should be available to other airlines to ensure a level playing field.
The committee also sought clarity on the rationale behind including these tax benefits in the privatization deal and questioned the role of the committee in overseeing such exemptions. Chairman Syed Naveed Qamar expressed concern that preferential treatment to one carrier could disrupt the sector’s competitive balance, which comprises five to six airlines.
Officials from the Federal Board of Revenue (FBR) briefed the panel, indicating that no aircraft imports are scheduled for PIA next year and questioned whether the exemption should be permanent. They suggested that any tax relief could be limited to a specific timeframe, such as five or ten years.
The officials further mentioned that the handover process of PIA is expected to complete by July. While a one-year exemption currently exists, PIA is reportedly seeking an extension of up to 15 years—a move that has attracted criticism from other airlines.
Members also discussed whether such exemptions comply with international financial agreements, with FBR representatives confirming that the matter has been cleared with the International Monetary Fund (IMF). The committee has summoned Privatisation Adviser Muhammad Ali to provide further insights at the next meeting.
