CCoP reiterates ‘resolve to divest’ PIA shares, but adds G2G mode

The Cabinet Committee on Privatisation (CCoP) constituted another committee, this time under the convenorship of the Minister of State for Finance and Revenue, Ali Pervaiz Malik, to evaluate the possible transaction options for the privatisation of Roosevelt Hotel in New York, while reiterating its resolve to divest national flag carrier PIACL “through privatisation or government-to-government (G2G) mode”.

According to a statement released by the Privatisation Commission on Friday, the CCoP would evaluate the modes to be adopted in the light of available legal provisions.

Roosevelt Hotel JV: FASA inked with JLL-led consortium

The development came during a meeting of the CCoP held on Thursday with the Deputy Prime Minister/ Foreign Minister, Ishaq Dar in the chair.

During the meeting, the CCoP considered the proposal of the Privatisation Commission (PC) Board whereby it recommended the rejection of the bid of Rs10 billion submitted by the Blue World City consortium for the divestment of 60% shares of Pakistan International Airlines Company Limited (PIACL) on 31st October 2024.

The CCoP accepted the recommendation of the PC board and rejected the bid.

Last month, the Blue World City consortium refused to match the minimum expectation of the PC of Rs85.03 billion and stuck to its original offer of Rs10 billion for a 60% stake in PIACL.

On Wednesday, the PC board rejected the Blue World bid for PIACL and decided to refer the issue of privatisation of PIA to the Cabinet Committee.

Meanwhile, during the meeting on Thursday, the CCoP reiterated the government’s resolve to divest PIACL through privatisation or government-to-government (G2G) mode.

“The CCoP noted with satisfaction the assessment by the aviation division on healthy PIACL’s finances. It also directed resolution of all issues and conclusion of an agreement for the sale of Services International Hotel before its next meeting,” read the statement.

It is pertinent to mention that the Services International Hotel is located in Lahore.

The committee members who attended the meeting included the Ministers of Privatisation, Industry and Food, Commerce, Power, Minister of State for Finance & Revenue, and federal secretaries of various divisions.