The federal government has transferred 11 properties worth Rs. 14.2 billion, including seven overseas assets, to the new owners of Pakistan International Airlines (PIA) as part of the airline’s privatization transaction, the Senate Standing Committee on Privatization was informed on Tuesday.
Privatization Commission Secretary Usman Bajwa told the committee that the transferred assets include four properties in Pakistan and seven properties located in India, the Netherlands, Uzbekistan, and the United States. The total value of the transferred properties exceeds the Rs. 10 billion upfront payment made by the buyers for the first phase of the transaction.
The government completed the transfer of 75 percent shares and management control of PIA on June 29 after receiving Rs. 10 billion. Under the agreement, the buyers will inject Rs. 80 billion into the airline for fleet expansion, modernization, operational improvements, and network growth.
The buyers have also committed to paying an additional Rs. 45 billion within one year to acquire the remaining 25 percent stake, taking the total transaction value to Rs. 55 billion.
The four domestic properties transferred to the new owners include PIA offices in Rawalpindi, Peshawar, Islamabad, and Quetta. The overseas assets include properties in Mumbai, New Delhi, Amsterdam, Tashkent, and New York. The committee was told that the remaining 33 PIA properties have been retained by the PIA Holding Company.
Bajwa said the new management plans to make Islamabad the airline’s main operational hub. He also informed lawmakers that several United States-based banks have shown interest in acquiring the Roosevelt Hotel in New York. The government aims to bring the property to market by December after finalizing its transaction structure.
Separately, the committee was informed that investors from China, Turkiye, and Saudi Arabia have expressed interest in acquiring electricity distribution companies. However, they have sought stronger regulation and broader reforms in the power sector.
Expressions of Interest for Faisalabad Electric Supply Company will close on August 7, followed by Gujranwala Electric Power Company on August 21 and Islamabad Electric Supply Company on September 7. Although investors may bid for multiple companies, each bidder will be allowed to acquire only one distribution company.
