Shafaqna Pakistan: The government has transferred 11 PIA properties worth Rs14.2 billion, including seven located abroad, to the airline’s new buyers, who also plan to establish Islamabad as their business hub, the Privatisation Commission said on Tuesday.
The transferred assets are valued at Rs14.2 billion, exceeding the Rs10 billion initially paid by the buyers for the acquisition. While the government has agreed to sell the airline for Rs55 billion, the transfer of the remaining 25 per cent stake and payment of the outstanding Rs45 billion are still pending.
Privatisation Secretary Usman Bajwa shared the details during a meeting of the Senate Standing Committee on Privatisation, which also reviewed the outsourcing of three major airports, the privatisation of power distribution companies, and the transfer of PIA’s assets to the new owners.
Bajwa also informed the committee that US-based banks were keen to acquire the pricey Roosevelt Hotel, New York. However, the final strategic decisions about the joint venture and the target set of foreign investors for privatisation of the hotel were pending.
The Privatisation Commission on Tuesday officially disclosed the list of 11 properties, including seven situated in India, the Netherlands, Uzbekistan and the United States. Four local properties are in Rawalpindi, Peshawar, Islamabad and Quetta.
Out of 44 properties, 11 valued at Rs14.2 billion have been given as part of the PIA privatisation transaction, Bajwa said while officially sharing these details for the first time with the Senate committee. PML-N Senator Afnan Ullah Khan chaired the meeting.
Bajwa said the remaining 33 properties have been retained under the PIA Holding Company.
The government completed the divestment of 75% shares of PIACL on June 29, 2026, and management control has been transferred to the purchaser.
The committee was informed that the buyers paid Rs10 billion to the government as sale proceeds, and Rs80 billion was injected into PIACL as fresh equity to strengthen the airline’s financial position, support fleet expansion and modernisation, expand its route network, enhance operational performance and customer service, and position the airline for long-term growth.
The committee was further told that the second closing is scheduled to take place within one year of the first closing, in accordance with the terms of the Sale Purchase Agreement, whereby the consortium has committed to invest a further Rs45 billion into PIACL.
The purchaser has also served its intent to buy the remaining 25% of PIACL shares as a call option within 12 months of first closing under the supplementary agreement for an additional payment of Rs45 billion to the Government of Pakistan.
Local properties transferred
According to the Privatisation Commission, Rawalpindi PIA Booking Office at Mall Road was handed over, valued at Rs2.3 billion. Peshawar Sale Office at Mall, Arbab Road was assessed at Rs5.1 billion. PIA Sales Office, Jinnah Avenue, Blue Area, Islamabad was assessed at Rs2.4 billion. Quetta PIA Sales Office Building, Shahra Hali, Cantonment was valued at Rs837.4 million.
Foreign properties
The commission informed the committee that two PIA properties in India had been given to the new buyers. These are Flat No.32, 3rd Floor, Jolly Maker-III, J.D. Somani Marg, Cuffe Parade, Mumbai, valued at Indian Rupee 112.5 million. Two floors in New Delhi, 5th and 6th at Narain Manzil, are also part of the transaction, valued at Indian rupee 121.92 million.
Three properties are situated in Amsterdam, Netherlands: at Leidsestraat 17, 1017 NT Amsterdam, valued at Euro 2.1 million; Koningsvaren 109, 1391 Amsterdam, valued at Euro 750,000; and Van Nijenrodeweg 835, 1082 JM Amsterdam, valued at Euro 583,000.
There is one property in Tashkent, worth 4 billion Uzbekistani Som, according to the commission, and one property in New York, Residence No 55 Saxon Woods Road Scarsdale, NY, valued at $1.7 million.
Bajwa said the new PIA management has informed that it wants to make Islamabad airport the hub of its activities.
Roosevelt Hotel
To a question, Bajwa said the Roosevelt Hotel will be taken to the market by December this year, and US banks have shown interest in acquiring it. The government wants to promote competition to get the best price, but a few strategic decisions are pending.
Bajwa said decisions about the nature of the joint venture and the targeted investors have not yet been taken.
Source: Express Tribune
