ISLAMABAD: The International Monetary Fund (IMF) has given the go-ahead to waive 18% general sales tax (GST) imposed by the Pakistan government on the induction of new planes if Pakistan International Airlines is privatized, the chairman of the privatization commission told a parliamentary committee this week.
Cash-strapped Pakistan is looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. A final bidding process for the airline’s privatization in October attracted just one bid of $36 million for a 60% stake in the national flag carrier. The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
“In the previous round, bidders recommended waiving the 18% GST imposed by the government on the induction of new planes and fleet expansion,” the privatization commission chairman told the National Assembly Standing Committee on Privatization on Monday, according to a press release.
“They believed that removing this tax would facilitate new aircraft acquisitions and support the growth of the aviation industry.”
The government presented these concerns to the IMF, which agreed that if PIA was privatized, the 18% GST could be removed to encourage private sector investment in new aircraft, the press release said.
PIA’s liabilities currently stand at Rs45 billion ($162 million), and the government says it is developing a strategy to address these financial burdens and ensure they do not deter potential buyers.
“A mechanism would be devised to address outstanding liabilities, ensuring that financial burdens do not become a hindrance for potential investors,” the statement added.
The development comes weeks after PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards. EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people.
Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.
IMF okays waiving 18% GST on new planes if Pakistan International Airlines privatized
https://arab.news/6a2jj
IMF okays waiving 18% GST on new planes if Pakistan International Airlines privatized
- Deal to sell PIA collapsed last year after buyer offered only fraction of asking price
- Pakistan hopes new EU routes, flying approval to UK will boost PIA’s selling potential
US freezes immigrant visa processing for 75 countries, including Pakistan
- Immigrant visas to be suspended from Jan 21, tourist visas unaffected
- Move targets “public charge” concerns as Trump revives hard-line immigration rules
ISLAMABA: The United States will pause immigrant visa issuances for nationals of 75 countries, including Pakistan, from January 21, the State Department said on Thursday, as President Donald Trump presses ahead with a hard-line immigration agenda centered on financial self-sufficiency.
In an update published on its website, the State Department said it was conducting a comprehensive review of immigration policies to ensure that migrants from what it described as “high-risk” countries do not rely on public welfare in the United States or become a “public charge.”
“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the department said.
The pause applies specifically to immigrant visas, which are issued to people seeking permanent residence in the United States. The department said applicants from affected countries may still submit applications and attend interviews, but no immigrant visas will be issued during the suspension.
According to the State Department, the affected countries include Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil, Thailand and dozens of others across Asia, Africa, the Middle East, Europe and Latin America.
The department said tourist and other non-immigrant visas are not affected, and that no previously issued immigrant visas have been revoked. Dual nationals applying with a valid passport from a country not on the list are exempt from the pause.
The State Department did not indicate how long the visa pause would remain in effect, saying it would continue until its review of screening and vetting procedures is completed.
The announcement underscores the breadth of the Trump administration’s renewed immigration crackdown. Since returning to office last year, Trump has revived and expanded enforcement of the “public charge” provision of US immigration law, which allows authorities to deny entry to applicants deemed likely to rely on public benefits.
During his previous term, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in courts before a revised version was upheld by the Supreme Court and later rescinded under former president Joe Biden.
The visa freeze also comes amid an intensifying domestic enforcement push. US Immigration and Customs Enforcement (ICE) has expanded operations nationwide, drawing scrutiny over its tactics. Last week, an ICE agent shot and killed Renee Good, a US citizen, during a federal operation in Minneapolis, sparking protests and renewed debate over immigration enforcement under the Trump administration.
