Fresh bids sought for second push to sell PIA
Months after its first attempt to sell off Pakistan International Airlines (PIA) stalled, the government on Thursday invited fresh bids with more incentives for buyers. The investors can submit an expression of interest by June 3, with the bidding process expected to take place between October and December. The government is offering 51 to 100 per cent share capital, with management control of the national flag carrier. This time around, the government has sweetened the deal by adding incentives, such as exemption from 18 per cent General Sales Tax on the lease or purchase of new aircraft; additional support to improve the effective net equity position of PIA’s balance sheet, which may include indemnification or transfer of certain liabilities; and coverage against certain tax and litigation claims.