The federal government has transferred 11 properties valued at approximately Rs. 14.2 billion to the new owners of Pakistan International Airlines (PIA) as part of the airline’s privatization process, officials informed the Senate Standing Committee on Privatization.
According to Privatization Commission Secretary Usman Bajwa, the transferred assets include four properties in Pakistan and seven overseas properties located in India, the Netherlands, Uzbekistan, and the United States. The total value of these assets exceeds the Rs. 10 billion upfront payment made by the buyers during the first phase of the transaction.
PIA Privatization Moves Forward
The government completed the transfer of 75 percent ownership and management control of PIA on June 29 after receiving the initial payment of Rs. 10 billion.
Under the privatization agreement, the new owners have committed to invest Rs. 80 billion in the airline to support:
- Fleet expansion
- Aircraft modernization
- Operational improvements
- Network expansion
In addition, they are required to pay Rs. 45 billion within one year to acquire the remaining 25 percent stake, bringing the total value of the deal to Rs. 55 billion.
Properties Included in the Transfer
The four domestic properties handed over are PIA offices located in:
- Rawalpindi
- Islamabad
- Peshawar
- Quetta
The overseas assets include properties in:
- Mumbai
- New Delhi
- Amsterdam
- Tashkent
- New York
Officials informed the committee that the remaining 33 PIA properties will remain under the ownership of the PIA Holding Company.
Islamabad to Become Operational Hub
Usman Bajwa told lawmakers that the airline’s new management plans to make Islamabad its primary operational hub.
He also revealed that several US-based financial institutions have shown interest in acquiring the Roosevelt Hotel in New York. The government aims to bring the property to market by December, once the transaction structure is finalized.
Interest in Power Distribution Companies
During the same meeting, the committee was informed that investors from China, Türkiye, and Saudi Arabia have expressed interest in acquiring Pakistan’s electricity distribution companies. However, they have emphasized the need for stronger regulatory oversight and broader reforms in the power sector.
The schedule for Expressions of Interest (EOIs) is as follows:
- Faisalabad Electric Supply Company (FESCO): August 7
- Gujranwala Electric Power Company (GEPCO): August 21
- Islamabad Electric Supply Company (IESCO): September 7
Although investors may submit bids for multiple companies, each successful bidder will be permitted to acquire only one distribution company.
