The Privatisation Commission on Thursday revealed that Pakistan International Airlines Corporation Limited (PIACL) utilised Rs28 billion in taxes collected on behalf of the Federal Board of Revenue (FBR) for its own operational expenses.

The disclosure came during a meeting of the Senate Standing Committee on Privatisation, chaired by Senator Afnan Ullah Khan.

The committee was briefed on the progress of PIA’s privatisation, as well as updates regarding the Roosevelt Hotel in New York and airport management contracts.

Officials informed the committee that the privatisation process of the national carrier was underway and expected to be completed by December.

“We are hopeful of receiving a strong bid this time,” the officials said, adding that four consortia are currently participating in the process.

The Commission further briefed the committee that the Precision Engineering Complex, which has been manufacturing Boeing aircraft parts since the 1980s, would be transferred from PIA to the Pakistan Air Force.

However, the complex remains financially strained, generating Rs390 million in revenue against expenditures exceeding Rs850 million annually.

Committee members expressed concern over the lack of interest from international airlines in PIA’s privatisation.

Officials explained that a government-to-government (G2G) agreement with the United Arab Emirates (UAE) is under consideration for land-side services at Islamabad International Airport.

A Turkish company, they said, had withdrawn from bidding due to a dispute over revenue sharing.

Regarding the Roosevelt Hotel in New York, the Privatisation Commission said the process of appointing a new financial adviser was in progress.

The committee also commended the successful privatisation of the First Women Bank and directed authorities to expedite the resolution of pension-related grievances of retired PIA employees.