Government Transfers Rs14.2 Billion in PIA Assets Under Privatisation Deal
The federal government has transferred 11 Pakistan International Airlines (PIA) properties worth Rs14.2 billion, including seven overseas assets, to the airline’s new owners as part of the ongoing PIA privatisation process, the Privatisation Commission informed the Senate Standing Committee on Privatisation on Tuesday.
The value of the transferred properties exceeds the Rs10 billion cash payment made by the new owners during the first phase of the transaction. The government has already completed the transfer of 75% of PIA’s shares, while the remaining 25% stake and an additional Rs45 billion payment will be completed during the second phase of the agreement.
Privatisation Secretary Usman Bajwa briefed the parliamentary committee on the progress of the transaction, the transfer of PIA assets, the future of the Roosevelt Hotel in New York, and the government’s broader privatisation programme, including power distribution companies.
He said the government completed the first closing of the PIA transaction on June 29, 2026, transferring management control of the national airline to the successful buyer.
Buyer Injects Rs80 Billion to Strengthen PIA
Under the agreement, the purchaser paid Rs10 billion to the government as the initial sale consideration while injecting Rs80 billion into PIA as fresh equity.
According to Bajwa, the additional investment will strengthen the airline’s financial position, support fleet expansion and modernisation, improve operational performance, expand domestic and international routes, enhance customer services, and place the airline on a stronger footing for long-term growth.
The committee was informed that the second phase of the agreement will take place within one year of the initial closing. During this stage, the buyer has committed to inject another Rs45 billion into PIA and exercise its option to acquire the remaining 25% shares for an additional Rs45 billion, completing the government’s divestment of the airline.
Bajwa told lawmakers that out of 44 PIA-owned properties, only 11 assets, valued at Rs14.2 billion, were transferred to the new owners under the privatisation agreement. The remaining 33 properties have been retained by the PIA Holding Company.
Local Properties Included in the Transaction
Among the domestic assets transferred to the buyer is the PIA Booking Office on Mall Road, Rawalpindi, valued at approximately Rs2.3 billion.
The PIA Sales Office on Arbab Road, Peshawar, is valued at around Rs5.1 billion, making it the most valuable local property included in the transaction.
The package also includes the PIA Sales Office on Jinnah Avenue in Islamabad’s Blue Area, worth approximately Rs2.4 billion, and the PIA Sales Office building in Quetta Cantonment, valued at around Rs837 million.
Seven Overseas Properties Handed Over
The Privatisation Commission also disclosed details of seven overseas properties transferred as part of the PIA privatisation deal.
Two of the properties are located in India. One is a residential flat in Mumbai’s Cuffe Parade, valued at 112.5 million Indian rupees, while the other comprises the fifth and sixth floors of Narain Manzil in New Delhi, valued at 121.92 million Indian rupees.
Three properties are situated in Amsterdam, Netherlands. These include a commercial property on Leidsestraat valued at €2.1 million, another property on Koningsvaren valued at €750,000, and a third property on Van Nijenrodeweg worth €583,000.
The package also includes a property in Tashkent, Uzbekistan, valued at 4 billion Uzbekistani som, and a residential property in Scarsdale, New York, valued at approximately $1.7 million.
Islamabad to Become PIA’s Main Business Hub
Bajwa informed the committee that the new management has expressed its intention to make Islamabad the airline’s primary business hub.
The move is expected to centralise key corporate and operational functions in the federal capital as the airline begins implementing its post-privatisation business strategy.
Roosevelt Hotel Attracts Interest from US Investors
The committee was also updated on the future of the Roosevelt Hotel in New York, one of Pakistan’s most valuable overseas assets.
According to Bajwa, several US-based financial institutions have shown interest in acquiring the hotel.
He said the government plans to take the property to the market by December 2026 to ensure maximum competition among potential investors and secure the best possible value.
However, important policy decisions regarding the structure of the proposed joint venture and the category of foreign investors eligible to participate are still under consideration.
Foreign Investors Show Interest in Power Distribution Companies
The committee also discussed the government’s ongoing privatisation of power distribution companies (Discos).
Bajwa revealed that investors from Türkiye, China and Saudi Arabia have expressed interest in acquiring electricity distribution companies but have linked their participation to reforms in Pakistan’s power sector.
According to the Privatisation Secretary, potential investors are seeking greater regulatory certainty, clearly defined performance targets and a level playing field before making investment decisions.
He added that the deadline for submitting Expressions of Interest (EOIs) for the acquisition of Faisalabad Electric Supply Company (FESCO) is August 7, followed by Gujranwala Electric Power Company (GEPCO) on August 21, and Islamabad Electric Supply Company (IESCO) on September 7.
Government Continues Broader Privatisation Programme
Bajwa clarified that while investors may submit bids for multiple distribution companies, each successful bidder will be allowed to acquire only one Disco, a measure intended to encourage broader participation and maintain competition in the privatisation process.
The latest developments mark another major milestone in the PIA privatisation process as the government advances its broader strategy of restructuring state-owned enterprises, attracting private investment and improving operational efficiency across key sectors of the economy.