Pakistan’s Privatisation Commission is moving forward with bold plans to sell the Roosevelt Hotel in New York City and Pakistan International Airlines (PIA).
During a Friday meeting of the Senate Standing Committee on Privatisation, chaired by Senator Afnanullah Khan, officials revealed a “One-Transaction Structure” for the hotel’s sale.
Privatisation Secretary Usman Akhtar Bajwa also shared updates on PIA. After a failed attempt last year when Blue World City’s lone bid fell short of the $300 million+ asking price—the government is tightening pre-qualification rules to exclude non-serious bidders. Fresh expressions of interest for PIA privatisation are expected by late April 2025.
“In our last attempt, issues like taxation and PIA’s balance sheet scared off bidders. Those are resolved now,” Muhammad Ali, the prime minister’s privatisation adviser, told Reuters. The government aims to sell 51-100% of PIA’s shares, with management control, by year-end. The exact stake will be set before final bidding.
Read: Pakistan Assures IMF of PIA Sale by July, Roosevelt Hotel Fate Unclear
PIA’s recent milestone, its first annual profit in 20 years, could attract more investors, especially with IMF approval for the sale. For the Roosevelt Hotel, owned by PIA, the government hired Jones Lang LaSalle to explore sale options, favouring a streamlined transaction.
Pakistan’s Broader Privatisation Agenda
Bajwa told the Senate that 24 state-owned entities are slated for sale in three phases. Phase one, which is targeted for completion within a year, includes PIA, the Roosevelt Hotel, and Zarai Taraqiati Bank. Phases two and three will span three and five years, with more entities possibly added after the Cabinet Committee on State-Owned Enterprises, led by the finance minister, finalizes its review.
Concerns arose over the Pakistan Minerals Development Corporation’s inclusion. Senator Umer Farooq argued it could be profitable and should stay public due to its strategic value. Bajwa noted that the Cabinet Committee is still deciding on its fate.
The committee also discussed Wapda’s plan to scrap eight non-operational power plants under GENCO I-IV. Two operational plants, Nandipur and Guddu (GENCO V), are being considered for privatisation. Seven senators’ public petition sparked debate, but officials defended the move, citing years of inactivity for the scrapped plants.
