PIA sale hurdles to be cleared soon

The International Monetary Fund (IMF) has given its consent for waiving 18% sales tax on the lease of aircraft for induction into Pakistan International Airlines (PIA) and for parking more liabilities in a holding company, removing the two major obstacles to PIA's privatisation. The development may help kick-start the privatisation process again for Pakistan's fourth-largest loss-making entity. Deputy Prime Minister Ishaq Dar on Tuesday took a briefing on the PIA sell-off, where it emerged that the two biggest hurdles may soon be removed, sources said. Government officials told The Express Tribune that the global lender had given its consent for amending the Sales Tax Act and waiving the 18% sales tax that the prospective investors of PIA would be required to pay for the induction of new or leased aircraft.