Taxpayers to pay Rs30b for PIA debt
The Pakistani government has allocated Rs73 billion for privatisation contingencies, including Rs30 billion to cover interest payments on the legacy debt of Pakistan International Airlines (PIA). This move follows the restructuring of the airline's debt into public debt, effectively shifting the financial burden onto taxpayers.
Why it matters
This highlights the fiscal strain caused by state-owned enterprise debt and the challenges of privatizing loss-making entities in developing economies.
--> Home Business Taxpayers to pay Rs30b for PIA debt Banks to earn Rs573b in interest over 10 years; govt extends sales tax exemptions to all airlines
facebook --> twitter --> whatsup --> linkded --> email MORE (3) Messenger Whatsapp --> ISLAMBAD: The government has allocated Rs73 billion for privatisation contingency, including about Rs30 billion to pay interest cost on legacy debt of Pakistan International Airlines (PIA), as it also decides to extend sales tax exemptions to all locally operated airlines to provide a level playing field.
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