Govt transfers Rs14.2bn PIA properties to new owners

The federal government has formally transferred 11 Pakistan International Airlines (PIA) properties, collectively valued at Rs14.2 billion, to the airline's new owners as part of the ongoing privatisation process.

The federal government has formally transferred 11 Pakistan International Airlines (PIA) properties, collectively valued at Rs14.2 billion, to the airline’s new owners as part of the ongoing privatisation process. The transferred assets include seven overseas properties and four located within Pakistan, while the remaining 33 properties will continue to remain under the control of the PIA Holding Company.

The details were shared by Privatisation Secretary Usman Bajwa during a meeting of the Senate Standing Committee on Privatisation, chaired by Senator Afnan Ullah Khan. The committee reviewed the progress of PIA’s privatisation, outsourcing of major airports, and the proposed sale of power distribution companies.

According to officials, the value of the transferred properties exceeds the Rs10 billion paid by the buyers during the first phase of the transaction. The government has agreed to privatise PIA through a deal valued at Rs55 billion, under which the consortium has already taken over 75% ownership and management control of the airline after completing the first closing on June 29, 2026.

The remaining 25% shares are expected to be transferred during the second closing, scheduled within one year, after the buyers make an additional payment of Rs45 billion in accordance with the Sale Purchase Agreement. Officials informed the committee that the consortium has already exercised its intention to purchase the remaining stake through a call option available under the supplementary agreement.

Besides the payment made to the government, the new owners have also injected Rs80 billion into PIA as fresh equity. The investment will be used to strengthen the airline’s financial position, modernise and expand its fleet, increase domestic and international routes, improve operational efficiency, enhance passenger services, and support the airline’s long-term growth strategy.

The Privatisation Commission disclosed that out of PIA’s total 44 properties, only 11 assets have been included in the privatisation transaction. The remaining 33 properties have been retained by the PIA Holding Company and are not part of the sale.

Local properties transferred

Among the domestic assets transferred to the new owners are the PIA Booking Office on Mall Road, Rawalpindi, valued at Rs2.3 billion; the PIA Sales Office on Arbab Road, Peshawar, valued at Rs5.1 billion; the PIA Sales Office in Islamabad’s Blue Area, valued at Rs2.4 billion; and the PIA Sales Office building in Quetta Cantonment, valued at approximately Rs837 million.

Overseas properties included in the deal

The transaction also includes valuable overseas assets. Two properties located in India—a residential flat in Mumbai’s Cuffe Parade and office floors in New Delhi’s Narain Manzil—have been transferred as part of the agreement.

Three additional properties in Amsterdam, the Netherlands, including buildings on Leidsestraat, Koningsvaren, and Van Nijenrodeweg, have also been handed over.

The list further includes one property in Tashkent, Uzbekistan, and a residential property in Scarsdale, New York, valued at approximately $1.7 million.

Islamabad to become airline’s operational hub

During the meeting, Usman Bajwa informed lawmakers that the new management intends to make Islamabad the airline’s principal business and operational hub. The move is expected to support future expansion plans and improve connectivity for both domestic and international operations.

Roosevelt Hotel sale moves forward

The committee also discussed the future of the Roosevelt Hotel in New York, one of Pakistan’s most valuable overseas assets.

Bajwa said the government plans to bring the hotel to the market by December 2026, adding that several US-based financial institutions have expressed interest in acquiring the property. However, key policy decisions regarding the structure of a possible joint venture and the selection of target investors are still under consideration before the transaction proceeds.

Foreign investors interested in power distribution companies

Providing an update on the privatisation of electricity distribution companies (DISCOs), the Privatisation Secretary said investors from Türkiye, China, and Saudi Arabia have shown interest in acquiring Pakistani power utilities.

However, he noted that potential investors have sought major reforms before committing. They have asked the government to establish clear performance targets, strengthen the regulatory framework, and ensure a level playing field for all participants.

The committee was informed that the deadline for submitting Expressions of Interest (EOIs) for Faisalabad Electric Supply Company (FESCO) is August 7, Gujranwala Electric Power Company (GEPCO) is August 21, and Islamabad Electric Supply Company (IESCO) is September 7. Officials clarified that while an investor may participate in bidding for multiple companies, only one distribution company can ultimately be acquired.