Web Desk: The government has transferred 11 PIA properties worth Rs14.2 billion, including seven overseas assets, to the airline’s new owners following the completion of the first phase of its privatization, officials told a Senate committee.
The transferred assets exceed by Rs4.2 billion the Rs10 billion paid by the buyer for the initial 75% stake in the national carrier. However, the government has yet to complete the transfer of the remaining 25% shares, which is tied to an additional Rs45 billion payment under the sale agreement.
Privatisation Secretary Usman Bajwa informed the Senate Standing Committee on Privatisation that 11 of PIA’s 44 properties were included in the privatization transaction, while the remaining 33 assets remain with the PIA Holding Company.
He said the government finalized the transfer of management control and a 75% stake in Pakistan International Airlines Company Limited (PIACL) on June 29, 2026.
The assets transferred include four properties in Pakistan and seven located overseas.
Domestically, the transaction covers PIA’s booking office on Mall Road in Rawalpindi, valued at Rs2.3 billion; the sales office on Arbab Road in Peshawar, worth Rs5.1 billion; the airline’s Blue Area office in Islamabad, valued at Rs2.4 billion; and the Quetta sales office building, assessed at approximately Rs837 million.
The overseas portfolio includes two properties in India, three in the Netherlands, one in Uzbekistan and a residential property in Scarsdale, New York, valued at $1.7 million.
Bajwa told lawmakers that the airline’s new management intends to make Islamabad its primary operational hub, signaling a shift in the carrier’s future business strategy.
The committee was also informed that the buyer injected Rs80 billion into PIACL as fresh equity to improve the airline’s financial health, expand and modernize its fleet, increase route coverage, enhance operational efficiency and strengthen customer services.
Officials said the consortium has committed to investing an additional Rs45 billion within one year under the Sale and Purchase Agreement.
The buyers have also exercised their intention to purchase the government’s remaining 25% stake through a call option within 12 months of the initial closing, subject to another Rs45 billion payment.
Separately, Bajwa said the government expects to bring New York’s Roosevelt Hotel to the market by December as part of its privatization strategy.
He said several US-based banks have expressed interest in acquiring the property. However, authorities have yet to decide on the structure of a potential joint venture and identify the category of investors they will target before launching the process.
Meanwhile, Bajwa said investors from Türkiye, China and Saudi Arabia have shown interest in acquiring Pakistan’s electricity distribution companies.
He noted, however, that prospective buyers are seeking broader reforms in the power sector before moving ahead. According to Bajwa, investors want clearly defined performance targets, an independent and effective regulator, and a level playing field for all bidders.
He added that the deadlines for submitting expressions of interest are Aug. 7 for Faisalabad Electric Supply Company, Aug. 21 for Gujranwala Electric Power Company and Sept. 7 for Islamabad Electric Supply Company. While investors may bid for multiple companies, each bidder will be allowed to acquire only one distribution company.
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