WEBDESK: The Pakistani government has confirmed that the Pakistan International Airlines – PIA sale will take place by July 2025 as part of its broader privatization plan. This commitment was made to the International Monetary Fund (IMF) to help improve the country’s financial stability.
Officials have stated that they are working to attract investors for PIA’s sale, with the goal of completing the process in the next few months.
In the past, attempts to sell the airline faced difficulties, including low bids that did not meet the minimum price set by the government. The sole bid received for the PIA sale last time was around Rs10 billion which was well below the asking price of Rs85 billion. To avoid similar setbacks, authorities are carefully assessing market interest before officially inviting bids from potential buyers.
Alongside the PIA sale, the government is also planning to privatize three financial institutions and three power distribution companies. Among them, Zarai Taraqiati Bank Limited (ZTBL) is expected to be sold by November 2025. Officials believe these steps will help reduce financial losses and improve the efficiency of these state-owned businesses.
Privatization and Investment Minister Abdul Aleem Khan on Thursday, 6th March, said that the government would complete all the steps to push the PIA sale during the next three months.
PIA sale aside, Roosevelt Hotel’s future remains unclear;
Meanwhile, the future of the Roosevelt Hotel in New York, which is owned by PIA, remains unclear. The New York City government has announced plans to end a lease agreement for the hotel one year early, which could result in a financial loss of around $80 million for Pakistan. A special committee has suggested selling the hotel through open bidding, but a final decision is still pending.
The global lender has been told that the Cabinet Committee on Privatization would make a decision whether to sell the Roosevelt Hotel or give it under a joint lease agreement. The hotel, owned by PIA, is located in an area considered among the top 1% of the most expensive properties in the world.
The hotel has 1,025 rooms and Pakistan had given it on a three years’ lease to the Immigrant Housing Business by the New York City Government in July 2023.
But the IMF was informed that the New York City government had given a notice to end the deal with effect from July – one year before its expiry. This would cause around $80 million loss of business. The city government had taken the hotel at $210 per room for the third year.
The government has assured the IMF that these privatization efforts, including the PIA sale, will be completed as planned. Authorities hope that these steps will attract investors, ease financial burdens, and improve the performance of the affected sectors.
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