Islamabad (HRNW)- The government has decided to exempt all airlines, including Pakistan International Airlines (PIA), from sales tax on imported goods for 15 years, according to officials from the Privatization Commission.
The decision was announced during a meeting of the National Assembly’s Standing Committee on Privatization chaired by Dr. Farooq Sattar. Officials said the exemption, recommended by the National Assembly’s Finance Committee, will take effect from the next federal budget.
The committee was also briefed on plans to privatize the Zarai Taraqiati Bank Limited (ZTBL). Officials said ZTBL was placed on the privatization list in 2024 and that a financial advisor has prepared a transaction structure. While 100 percent privatization has been approved by the financial advisor, the government is considering retaining a portion of its shares. Officials expect the transaction plan to be approved this month.
The committee also reviewed the proposed privatization of distribution companies (DISCOs). In the first phase, FESCO, IESCO and MAPCO are expected to be privatized, with nine DISCOs divided into four batches. The private sector will be offered between 51 and 100 percent shares.
Officials said 12 companies have expressed interest in FESCO, including three Turkish and one Chinese company. Bidding for the first batch is scheduled for December 2026.
The committee was informed that DISCOs continue to face accumulated losses and transaction-related challenges, with losses exceeding targets set by NEPRA. Officials also said efforts would be made to protect employees, although the final decision will depend on consultations with successful bidders.
Committee Chairman Farooq Sattar described the petroleum levy as a major obstacle to economic improvement and said difficult decisions regarding the levy would be necessary to strengthen the economy.
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