ISLAMABAD: The Pakistani government plans to complete the privatisation of Pakistan International Airlines Company Limited (PIACL) during the current fiscal year (2024-25).
Simultaneously, the government is considering three options for the privatisation of the Roosevelt Hotel in New York City to mitigate Rs628.5 billion liabilities and losses parked in PIA Holding Company, a parliamentary committee was told on Thursday.
MNA Farooq Sattar chaired the meeting of National Standing Committee on Privatisation to review the progress of the privatisation of the PIACL, further proposed options under consideration and the way forward for privatisation.
‘Privatisation of PIA by end of Oct’
The committee was informed that the International Monitory Fund (IMF) agreed for the removal of 18 percent GST on aircrafts and cleaning of Rs45 billion negative equity of PIACL.
The committee was further informed that it was decided to capitalise on positive momentum generated by the IMF’s consent on critical asks, opening up of European routes and to avoid further loss to national exchequer; it was decided to go for fresh Expression of Interest (EOI) at the earliest.
Privatisation Commission Secretary Usman Akhtar Bajwa briefed the members’ committee that a new Expression of Interest (EoI) will be sought from potential investors by the end of this month following opening of the routes of PIA for Europe.
He said that the government had decided to re-engage Ernst & Young as finance advisor for PIACL’s privatisation.
Some new clauses would be incorporated in the transaction structure of the entity, he added.
He said that the Cabinet Committee on Privatisation (CCoP) constituted under Minister of State for Finance to evaluate options and way forward of privatisation of Roosevelt Hotel.
He explained that the committee would submit its recommendation on three transaction structure approved by the financial advisor. The short-term transaction is outright sale of the entity which process will be completed within three years. Second transaction is joint venture which required 8 to 10 years and third is a long-term lease for 99 years. “Recommendations of the committee will be placed before the CCoP for consideration and decision”, he added.
Responding to a question regarding privatisation of State Life Insurance Corporation (SLIC), Shoaib Javed Hussain, chief executive officer said the entity would be put on sale after approval of certain amendments in Life Insurance Nationalization Order (LINO). He said that the privatisation of SLIC was at initial stage.
The committee extended sub-committee’s period for three more months with a task to look into the reasons of decline of PIACL and submit its report to the committee.
Copyright Business Recorder, 2025
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