The National Assembly’s Standing Committee on Privatization was informed on Tuesday that the privatization of Pakistan International Airlines (PIA) remains incomplete, despite payments exceeding $4.3 million (Rs. 1.2 billion) to the Financial Advisor. Secretary Privatization Commission, Usman Bajwa, briefed the committee, revealing that 63% of the financial advisory fee has been paid, with the total due amount standing at $6.9 million.

Bajwa clarified that the Financial Advisor will only receive payments for the second phase of privatization after the sale is finalized. He also informed the committee that the previous bid for PIA was deemed unacceptable, delaying the process further.

The committee also discussed PIA’s assets, noting that PIA Holding owns 26 properties, while PIA-ACL owns five. Among these, the Roosevelt Hotel in New York and the Skype Hotel in Paris, both owned by PIA Holding, were briefly highlighted. The committee was informed that the Roosevelt Hotel’s contract is set to expire in May 2025, after which it will be vacated following a three-month notice.

Committee Opposes Closure of Utility Stores
Separately, the committee expressed strong opposition to the closure of Utility Stores, citing financial distress caused by the abrupt withdrawal of government subsidies in August 2024. Members argued that the institution, which previously generated Rs. 1.5 billion in annual profits and contributed Rs. 25 billion in taxes, was pushed into crisis due to the subsidy cuts.

The government had allocated Rs. 60 billion in subsidies for Utility Stores in the current budget. Officials highlighted that while the country’s 400,000+ retailers collectively pay Rs. 114 billion in taxes, Utility Stores, despite representing just 1% of the retail sector, contribute 20% more in taxes. The committee discussed the possibility of transitioning the institution from a subsidy-dependent model to a commercial one to ensure its sustainability.