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
Pakistan, UK launch £10 million higher education partnership
- Pak-UK Education Gateway second phase expands climate research, scholarships, university exchanges
- First phase was launched in 2018 and delivered 165 partnerships, 2,000 joint studies and £5 million in grants
ISLAMABAD: Pakistan’s Higher Education Commission (HEC) and the British Council have launched the £10 million second phase of the Pak-UK Education Gateway, the HEC said on Monday, a joint initiative aimed at deepening collaboration between universities in both countries on research, mobility and higher-education reform.
The program, funded equally by the HEC and the British Council, builds on a partnership launched in 2018 and seeks to strengthen institutional ties between Pakistani and British universities, focusing on shared challenges including climate change, skills development and economic growth.
Education cooperation has become an increasingly important pillar of broader Pakistan-UK relations, as both countries look to expand academic mobility, research collaboration and international recognition of qualifications at a time when higher-education systems face pressure to respond to climate risks, labor-market shifts and funding constraints.
“This £10 million partnership is set to deepen collaboration between UK and Pakistani universities on critical issues like Climate Change and Mobility. A true system-to-system commitment,” the HEC said in an X post.
According to the British Council and HEC, the first phase of the Pak-UK Education Gateway supported 165 institutional partnerships, generated around 2,000 joint research papers and awarded £5 million in research grants. Officials say the second phase aims to build on that foundation as part of a longer-term effort to internationalize Pakistan’s higher-education sector.
“Education is the building block of growth and prosperity. Our work on education in Pakistan supports people throughout their lives: from helping reform education policy at the school level, to our strong partnership in higher education,” British High Commissioner Jane Marriott said in a statement.
“This next phase builds on our already strong relationship, and will unlock opportunities to help both our higher education sectors thrive.”
Opportunities under the second phase include increased funding for scholarships, joint research grants and faculty exchanges, alongside a Start-Up Challenge Fund to support Pakistan-UK university collaborations pursuing commercial opportunities and access to new markets.
The program will also focus on leadership and governance reforms within Pakistan’s higher-education system, including quality assurance, improved campus accessibility for people with disabilities, and greater participation of women in senior leadership roles. It further aims to expand opportunities for Pakistani students to study UK-accredited courses without leaving their home cities, alongside a commitment to mutual recognition of qualifications.
Pakistan’s Minister for Federal Education and Professional Training Khalid Maqbool Siddiqui said the initiative had already delivered concrete results since its launch in 2018, calling education “the bridge that connects people, cultures, and futures.”
Acting HEC Chairperson Nadeem Mahbub described the Gateway as a system-to-system partnership rather than a stand-alone program, noting that it had benefited institutions and students in both countries.
