KARACHI – Fauji Fertilizer Company Limited (FFC) explores stake acquisition in state owned loss making PIA to boost national carrier’s turnaround.
Pindi based fertilizer manufacturer took major step towards expanding its investment portfolio by expressing interest in acquiring shares of Pakistan International Airlines Corporation Limited (PIACL).
The decision came during FFC’s 234th Board of Directors meeting held on June 13, 2025, where board approved submission of Expression of Interest (EOI) and prequalification documents to the Privatization Commission. This move aligns with the government’s ongoing privatization drive to improve the financial and operational health of the national flag carrier.
The company also announced plans to carry out a comprehensive due diligence exercise to assess the feasibility and strategic fit of this potential investment in PIA.
In a related development, the federal government announced sales tax exemption on aircraft imports and leasing for PIA as part of efforts to facilitate its privatization. The exemption, outlined in the federal budget for 2025-26, ends sales tax on aircraft imports and leasing agreements, providing significant financial relief to the struggling airline.
As per available information, the tax relief extends to seven key categories of aviation-related imports. Importantly, the exemption on aircraft imports for PIA is retroactive to March 19, 2015, potentially providing the airline with financial benefits on fleet acquisitions over the past decade.
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