PIA buyers get Rs14.2b properties

Senate committee told assets in India, Netherlands, US part of Rs55b deal

ISLAMABAD:

The government has transferred 11 properties worth Rs14.2 billion, including seven situated abroad, to the new buyers of Pakistan International Airlines (PIA), who also want to make Islamabad their new business hub, said the Privatisation Commission on Tuesday.

The Rs14.2 billion sum is Rs4 billion more than the Rs10 billion cash that the new buyers paid against the acquisition of 75% shares. The government has sold 100% stake in return for Rs55 billion cash, but the final phase of transfer of 25% shares and payment of the remaining Rs45 billion cash are pending.

Privatisation Secretary Usman Bajwa shared these details with the Senate Standing Committee on Privatisation, which met to discuss issues related to outsourcing of three major airports, privatisation of power distribution companies, and the value and number of PIA properties given to the new buyers.

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.

Discos privatisation

Bajwa said foreign investors from Türkiye, China and Saudi Arabia have shown interest in acquiring power distribution companies, but they have linked their interest with a set of reforms in the power sector.

The foreign prospective buyers want clarity on their targets, a strong regulator that could monitor these goals, and more importantly, they have asked for a level playing field, Bajwa said.

The deadline to submit the Expression of Interest for acquisition of Faisalabad Electric Supply Company is August 7, for Gujranwala it is August 21, and for Islamabad September 7. Bajwa said one investor can bid for more than one company but can acquire only one distribution company.