Pakistan issues electric vehicle production licenses to 57 manufacturers

ISLAMABAD: The International Monetary Fund (IMF) has given the go-ahead to waive 18% general sales tax (GST) imposed by the Pakistan government on the induction of new planes if Pakistan International Airlines is privatized, the chairman of the privatization commission told a parliamentary committee this week.
Cash-strapped Pakistan is looking to offload a 51-100% stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. A final bidding process for the airline’s privatization in October attracted just one bid of $36 million for a 60% stake in the national flag carrier. The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.
Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.
Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.
“In the previous round, bidders recommended waiving the 18% GST imposed by the government on the induction of new planes and fleet expansion,” the privatization commission chairman told the National Assembly Standing Committee on Privatization on Monday, according to a press release.
“They believed that removing this tax would facilitate new aircraft acquisitions and support the growth of the aviation industry.”
The government presented these concerns to the IMF, which agreed that if PIA was privatized, the 18% GST could be removed to encourage private sector investment in new aircraft, the press release said.
PIA’s liabilities currently stand at Rs45 billion ($162 million), and the government says it is developing a strategy to address these financial burdens and ensure they do not deter potential buyers.
“A mechanism would be devised to address outstanding liabilities, ensuring that financial burdens do not become a hindrance for potential investors,” the statement added.
The development comes weeks after PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards. EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people.
Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.

ISLAMABAD: The Pakistan government’s recent amendment to the country’s cybercrimes act had “seriously threatened” Internet freedom and free expression, Human Rights Watch said on Tuesday, calling on the nation’s parliament to repeal or revise the Pakistan Electronic Crimes (Amendment) Act, 2025.

The new law, enacted on January 29, includes provisions making the dissemination of “fake or false” information a criminal offense punishable by up to three years in prison without clearly defining “fake or false” news. Stakeholders like journalists unions and digital rights experts say they were excluded from consultations on the bill, which prevented genuine public scrutiny of the new law.

“Pakistan’s amended Prevention of Electronic Crimes Act neither protects the public from legitimate online security threats nor respects fundamental human rights,” said Patricia Gossman, associate Asia director at Human Rights Watch. “The government should uphold the right to free expression and overhaul the new law by removing its abusive provisions.”

The amendments to the Electronic Crimes Act create four new government bodies to regulate online content and broaden the definition of online harm. The government bodies are authorized to block and remove content based on ambiguous criteria that do not meet the standards of proportionality and necessity required under international human rights law, HRW said. 

One of the bodies, the Social Media Protection Tribunal, comprises government-appointed members rather than independent members of the judiciary.

Another new body, the Social Media Protection and Regulation Authority, is authorized to order any social media company to remove or block content deemed to be “against the ideology of Pakistan,” be known to be “fake or false,” or to cast aspersions on various public officials. The authority can also require any social media company to register with it and impose any conditions it deems “appropriate” upon registration.

Parliament adopted the amendments in the context of an escalating crackdown on digital speech in Pakistan including frequently shutting down the Internet and throttling Internet networks. The social media platform X has already been banned since days after February general elections last year as allegations of rigging emerged online. There are regular reports of VPN restrictions, and the government is also moving to implement a national firewall. 

“Pakistani authorities have denied or limited access to the Internet as a default policing tactic to shut down protests and prevent criticism of the government under the guise of maintaining law and order and curbing misinformation,” HRW said. 

The nongovernmental Human Rights Commission of Pakistan has expressed concern the new law is “likely to become yet another means of targeting political workers, human rights defenders, journalists and dissidents by effectively penalizing criticism of state institutions.” The Pakistan Federal Union of Journalists has announced nationwide protests against the amendment.

“The new Electronic Crimes Act will further entrench violations of free expression and Internet freedoms in Pakistan,” Gossman said. “Digital policing of citizens will not protect them from ‘fake news,’ but will give the authorities a weapon to punish people whose speech they don’t like.”