ISLAMABAD: The Federal Board of Revenue (FBR) has confirmed it will recover the outstanding Federal Excise Duty (FED) dues from Pakistan International Airlines (PIA) after the airline’s privatization is completed.
Dr. Hamid Ateeq Sarwar, FBR Member Inland Revenue (Operations), made the statement while addressing an audit objection raised by the Auditor General of Pakistan (AGP). The issue surfaced during the recent Public Accounts Committee meeting reviewing FBR audit paras pending for over a decade.
AGP officials emphasized the importance of recovering the FED amount, noting that it was collected from consumers and not a government grant to the national carrier. The outstanding dues amount to approximately Rs 920 million.
Dr. Sarwar explained that immediate recovery of FED from PIA could jeopardize the airline’s operations. Therefore, the FBR will wait until after privatization to collect the dues. He added that the Privatization Commission is responsible for updating the status and progress of PIA’s privatization.
This approach aims to balance the government’s fiscal interests with the operational viability of PIA during its transition from a state-owned enterprise to a privatized entity.
