The federal government will issue a letter of intent to privatize the Roosevelt Hotel in the first week of August.
The Privatisation Commission has sanctioned a 99-year lease or joint venture for the hotel’s privatization. Furthermore, the government has clarified that privatising power distribution companies will not proceed until 2026.
Additionally, the Commission has determined that Pakistan International Airlines (PIA) will remain under state ownership unless bids meet or exceed the set reference price. Minister for Privatisation Abdul Aleem Khan noted that only 21 of PIA’s 33 aircraft are operational, and he characterized the fleet’s condition as deplorable.
The minister emphasised the government’s commitment to transparency in a media briefing on privatization policies, plans, and strategies. All privatization bids for loss-making enterprises will be broadcast live.
According to a press release, the minister updated the media on PIACL, Roosevelt Hotel, HBFC, and First Women Bank transactions.
He noted that PIA presents a profitable opportunity for potential buyers if invested properly. He commended the airline’s pilots for their professionalism and expertise.
The minister expressed regret over past privatization delays, noting they have cost billions in losses. Under long-term concessions, he announced readiness to privatize Distribution Companies (DISCOs), including HESCO, PESCO, and SEPCO.
Failures to privatize PIA have resulted in a loss of Rs 850 billion to the national exchequer. The government has faced criticism over its handling of privatization projects like Pakistan Steel Mills and the Reko Diq project. The Minister for Privatization blamed various parties involved in the privatization process for these financial losses.
