Author name: Web Desk

In a landmark auction on December 23, 2025, the Arif Habib consortium emerged victorious in the privatisation of Pakistan International Airlines (PIA), securing the national flag carrier with a final bid of Rs135 billion. The transparent process, live-telecast from Islamabad, marked Pakistan’s largest privatisation transaction in nearly two decades and the second attempt after a failed bid last year. Intense Bidding Rounds Seal Historic Deal Three pre-qualified bidders participated: the Arif Habib consortium, Lucky Cement, and Airblue. Initial sealed bids were Rs115 billion (Arif Habib), Rs101.5 billion (Lucky Cement), and Rs26.5 billion (Airblue). Airblue withdrew early as its offer fell below the Rs100 billion reference price.In the second round, Lucky Cement raised its bid to Rs134 billion, but Arif Habib countered with Rs135 billion, prompting Lucky Cement to concede. The government offered at least 75% stakes, with the winner having 90 days to acquire the remaining 25%. Government Hails Transparent Process and Future Prospects Finance Minister Muhammad Aurangzeb praised the all-Pakistani bidders, stating the sale would “stop the bleeding” of losses and position PIA globally. Privatisation Adviser Muhammad Ali emphasised the need for investment to expand the fleet from 18 aircraft and restore the airline’s former glory.Prime Minister Shehbaz Sharif highlighted the process’s transparency, with sealed envelopes and live streaming. Unsuccessful bidders are barred from future management roles. The deal aims to attract further local and foreign investment, turning PIA from a liability into a competitive carrier.

Islamabad, December 23, 2025 – The Federal Board of Revenue (FBR) has released its long-delayed Biannual Review for the second half of fiscal year 2024-25, revealing a significant 54.7% year-on-year increase in withholding tax (WHT) collection from salaried individuals during January-June 2024-25.Record Rs214.2 Billion Collected Under Section 149 Read More: https://theboardroompk.com/pakistans-wealth-gap-widens-top-10-hold-59-of-total-wealth-report-reveals/ Withholding tax deducted from salaries under Section 149 of the Income Tax Ordinance 2001 soared to Rs214.2 billion in the January-June period of FY2024-25, marking a substantial rise compared to the corresponding period in FY2023-24. This growth highlights the salaried class’s growing contribution to direct tax revenues, amid ongoing economic pressures and persistent high inflation.Broader Withholding Tax Trends Show Robust GrowthThe report also indicates strong performance across other withholding tax categories. Collections from contracts (Section 153) rose 39%, imports (Section 148) increased by 10.9%, telephone users (Section 235) grew 24.1%, and exports (Section 236) climbed 23.5%. These figures underscore the heavy reliance on withholding mechanisms for revenue mobilization, as WHT continues to form a major portion of FBR’s income tax receipts.The delayed release of the biannual data—six months after the period ended—comes as the government pushes for fiscal consolidation under international commitments. While the surge reflects effective deduction at source, it also intensifies the tax burden on formal sector employees, who remain one of the most compliant taxpayer segments in Pakistan.

Islamabad, December 22, 2025 – The Auditor General of Pakistan (AGP) has officially initiated the transition from the current cash-based government accounting system to an accrual-based framework, marking a landmark reform in public financial management. Currently, Pakistan’s government accounts, prepared on a cash basis since 2000, record transactions only when cash is received or paid. In contrast, accrual-based accounting recognizes revenues when they are earned and expenses when they are incurred, regardless of when actual cash changes hands. For instance, if a government department provides services in one fiscal year but receives payment in the next, accrual accounting records the revenue in the year the service was delivered. This method provides a more comprehensive view of financial position, including assets, liabilities, receivables, and payables, leading to greater accuracy in assessing fiscal health. Read More: https://theboardroompk.com/pakistans-circular-debt-crisis-is-stalling-1-billion-gas-field-investment/ Understanding Accrual-Based Accounting Accrual accounting, aligned with International Public Sector Accounting Standards (IPSAS), offers a fuller picture of government finances compared to cash-based systems, which can distort long-term obligations like pensions or debts. It enhances transparency by revealing true economic impacts of policies and improves decision-making through reliable data on commitments and resources. The AGP, exercising authority under Article 170 of the Constitution, is leading the review with technical assistance from the World Bank. The new standards will apply uniformly to federal, provincial, and local governments upon presidential approval. This move underscores the government’s commitment to fiscal discipline, accountability, and better governance. Officials stated that the shift will significantly elevate the quality of financial reporting, aligning Pakistan with global best practices for the first time.