The National Assembly Standing Committee on Privatisation has approved a sales tax exemption on imported items for all airlines, including PIA, for a period of 15 years, effective from the upcoming budget.
The decision was taken during a meeting of the committee chaired by Dr Farooq Sattar. Officials of the Privatisation Commission informed the committee that the exemption was being granted on the recommendation of the National Assembly Finance Committee.
The meeting was also briefed on the privatisation of Zarai Taraqiati Bank Limited (ZTBL), which was added to the privatisation list in 2024. Officials said the financial advisor had prepared the transaction structure and consultations were under way.
The financial advisor has approved 100 percent privatisation of the bank, though the government is considering retaining some shares. Officials expressed hope that the ZTBL transaction plan would be approved this month, with the privatisation process to be completed within the current fiscal year.
The committee was further updated on the privatisation of power distribution companies (DISCOs). In the first phase, FESCO, IESCO and MEPCO will be privatised. Officials said the nine DISCOs had been divided into four batches, with 51 to 100 percent shares to be offered to the private sector.
Regarding FESCO, officials said 12 private companies had submitted offers, while three Turkish firms and one Chinese company had also expressed interest in the acquisition. Bidding for the first batch of DISCOs is scheduled for December 2026.
The Secretary of the Privatisation Commission told the committee that the reserve price of the DISCOs would be finalised on the day of bidding, and that qualified bidders would be provided the record of the respective DISCOs. Efforts would be made to retain existing employees, though the final decision would depend on discussions with the bidders.
The committee was also informed that the DISCOs carry old losses and unresolved balance sheet transaction issues, with their losses currently exceeding the target set by the National Electric Power Regulatory Authority (NEPRA).
Committee Chairman Farooq Sattar termed the petroleum levy a major obstacle to economic improvement, stating that a tough decision on the levy would be necessary if the economy was to be put on a better track.
