Exemption of Default Surcharge and Penalties against Current Tax Liability of PIACL

Govemment of Pakistan Revenue Division Federal Board of Revenue *++ Islamabad, the O\il May, 2026 NOTIFICATION S.R.O. 799 (l)12026. In exercise of the powers conferred under section 183 of the Income Tax Ordinance, 2001 (XLIX of 2001), and in pursuance of the Cabinet Decision in Case No. 928lRule-1912025/ 12 5 3 dated the 31st December,2025, the Federal Govemment is pleased to exempt default surcharge and penalties against the current tax liabilities of the Pakistan Intemational Airlines Corporation Limited (PIACL), amounting to Rs. 8,765,972,0001-, subject to the final determination, in order to successfully conclude the process for divestment ofPIACL to the successful bidder and to ensure timely execution ofthe bid documents and satislaction of terms contained therein. This exemption shall be subject to the condition that the current liabilities ofthe PIACL (amounting to PKR 8,765,972,000/-) as at 30th June. 2025 shall be paid to the Federal Board of Revenue within a period offour years, lollowing a grace period ofone year in equal annual installments, after First Completion as defined in the Share Purchase and Subscription Agreement between the Govemment of Pakistan and successful bidders. [No. 1(5)R&S/2026] )r( (Sajjad Taslim Azam) Member (lnland Revenue)/ Additional Secretary