Government Moves Forward with PIA Privatisation Amidst New Roadmap
The 231st meeting of the Privatisation Commission Board was held on Monday at the Privatisation Commission Headquarters in Islamabad. The session was presided over by Muhammad Ali, the newly appointed Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission.
PIA Privatisation: Second Attempt at Divestment
The key agenda item was the approval of the transaction structure for the divestment of Pakistan International Airlines Corporation Limited (PIACL).
The Privatisation Commission Board (PCB) recommended to the Cabinet Committee on Privatisation (CCoP) the proposed structure for the second attempt at PIACL privatisation, which involves selling:
- 51% to 100% of PIACL’s share capital, along with
- Full management control of the airline
The final terms and conditions for the transfer and acquisition of PIA’s equity stake will be determined during the bidding process and outlined in the bid documents, subject to CCoP approval.
Roosevelt Hotel Privatisation Under Review
The board also discussed the possible privatisation of Roosevelt Hotel Corporation (RHC) in New York, a property owned by Pakistan International Airlines Investment Limited (PIAIL).
However, before making any final decision, the Privatisation Commission decided to hold a briefing with the financial adviser to evaluate the best transaction structure options for the hotel’s future.
Government’s Commitment to Privatisation
The privatisation of PIA has been a long-debated issue, with previous efforts failing due to legal, financial, and structural challenges. The government is now seeking a new roadmap to attract potential investors and revive the national flag carrier.
Similarly, the future of Roosevelt Hotel in New York remains uncertain, with various privatisation, leasing, or redevelopment options under consideration.
