PIA buyers seek investment protection

Local prospective buyers of Pakistan International Airlines (PIA) have demanded protection that is currently available to foreign investors under an Act of parliament and have also sought complete exemption from taxes applicable to air travel, fuel and the lease of aircraft. Privatisation Commission sources told The Express Tribune that some of the shortlisted parties had placed their demands before the government during the ongoing PIA due diligence process. They said that the demands along with their refusal to accept performance benchmarks were making it harder to smoothly press ahead with the privatisation transaction. The demands of bidders are in conflict with an understanding reached with the International Monetary Fund (IMF) that bars Islamabad from giving any special treatment to any segment of investors, according to officials of the finance ministry.