ISLAMABAD: Pakistan International Airlines and other airlines operating in the country are set to receive a 15-year sales tax exemption on imported goods, with the measure expected to take effect from the next federal budget, officials told a National Assembly committee.
The decision was discussed at a meeting of the National Assembly Standing Committee on Privatisation, chaired by Dr Farooq Sattar.
Privatisation Commission officials told the committee that, on the recommendation of the National Assembly’s finance committee, the exemption would apply to PIA as well as other airlines and remain in force for 15 years.
ZTBL Privatisation Plan Under Review
The committee was also briefed on the privatisation of Zarai Taraqiati Bank Limited (ZTBL).
Officials said ZTBL was placed on the privatisation list in 2024 and that a financial adviser had prepared the transaction structure.
The adviser has recommended 100% privatisation, while the government is also considering retaining a portion of the bank’s shares.
Officials said they expect the transaction plan to be approved this month and will try to complete the privatisation during the current fiscal year.
FESCO, IESCO and MEPCO in First Phase of DISCO Privatisation
The committee was also updated on plans to privatise electricity distribution companies.
In the first phase, FESCO, IESCO and MEPCO will be offered for privatisation.
Officials said nine distribution companies have been divided into four batches, with between 51% and 100% of their shares to be offered to private investors.
The committee was told that 12 private companies have submitted offers for FESCO, while three Turkish companies and one Chinese company have also shown interest.
Bidding for the first batch of DISCOs is expected to take place in December 2026.
According to the Privatisation Commission secretary, the reserve price for the distribution companies will be finalised on the bidding day, while qualified bidders will be provided access to the companies’ records.
Officials said efforts would be made to retain employees, although the final decision would depend on negotiations with successful bidders.
The committee was also informed that the distribution companies continue to face legacy losses and balance-sheet issues, while their losses remain above NEPRA targets.
Farooq Sattar Calls Petroleum Levy a Major Economic Hurdle
During the meeting, committee chairman Farooq Sattar described the petroleum levy as a major obstacle to economic improvement.
He said the government would have to take a difficult decision on the levy if it wanted to improve the economy.
The meeting covered a broader privatisation agenda, including PIA, ZTBL and power distribution companies, as the government moves ahead with restructuring and divestment plans across major state-linked entities.
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