(24 News) In connection with the privatization of Pakistan International Airlines (PIA), the IMF has accepted the demand of ending sales tax exemption and equity losses.
According to sources, the International Monetary Fund has agreed to a key demand for the privatization of the national airline, according to which the buyer of PIA will get sales tax exemption for buying or leasing aircraft for all routes.
Sources say that with the elimination of sales tax exemptions and losses, the bid for the national airline can now go up to Rs 350 billion, and PIA’s debt of Rs 660 billion has been stocked by the government in the holding company.
According to the sources, the proceeds from privatization and sale of Roosevelt Hotel will be settled for repayments. IMF has also approved to settle the debt of PIA Holding Company, 6 months for Roosevelt Hotel. The joint venture is estimated to be worth up to $1 billion in sales.
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It may be noted that Prime Minister Shehbaz Sharif has been briefed on the joint venture for tax exemptions, liquidation of losses, and the sale of the Roosevelt Hotel. Allowed, sales tax exemption has also been granted for purchase and lease of aircraft for domestic routes on re-application.
Aircraft on PIA lease will enjoy sales tax exemption up to Rs 81 lakh per month.