Finance Minister Hopes to Complete PIA Sale, Outsourcing of Islamabad Airport Next Month

The federal government is trying to complete the sale of Pakistan International Airlines (PIA) and outsourcing of Islamabad International Airport in November 2024, Finance Minister Muhammad Aurangzeb told AFP. Speaking at the World Bank headquarters in Washington, Aurangzeb said the five-month delay in privatizing these enterprises was primarily due to the need for macroeconomic stabilization and thorough due diligence on potential investors. He noted that foreign and local investors are looking for solid economic foundations before committing significant financial resources. The government extended the timelines to allow potential bidders more time to complete their assessments. The Finance Minister also highlighted improvements in Pakistan’s current account deficit and the stabilization of the rupee. He also emphasized the need to reform state-owned enterprises (SOEs), expand the tax base, and address inefficiencies in the power sector. Aurangzeb said now, expanding the tax base is a key part of the recently approved IMF program. He said only 5.2 million income tax returns were filed in 2022 despite the country’s population exceeding 240 million. He stressed taxing sectors like real estate, retail, and agriculture, as traditional taxpayers have reached a “saturation point.”