ISLAMABAD (Dunya News) – The federal government has granted a significant financial relief to Pakistan International Airlines (PIA), waiving billions of rupees in tax penalties and surcharges to facilitate its privatisation process.
According to a notification issued by the Federal Board of Revenue (FBR), default surcharges and penalties amounting to Rs8.76 billion have been written off. The move is aimed at ensuring the successful completion of the airline’s privatisation and the timely finalisation of agreements with the successful bidder.
The notification stated that the exemption has been granted under Section 183 of the Income Tax Ordinance, 2001, using the federal government’s discretionary powers, and will remain subject to specific 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.