Privatization of PIA-owned Scribe Hotel in the pipeline
In the wake of the successful privatization of the Roosevelt
Hotel, the Privatization Commission has reportedly initiated inquiries into the
PIA-owned Scribe Hotel in Paris, according to sources cited by ARY News.
As per the available information, the Privatization
Commission has requested comprehensive details concerning the assets, financial
status, and management agreements related to the Scribe Hotel from Pakistan
International Airlines (PIA).
PIA
not to sell New York’s Roosevelt Hotel
Insiders familiar with the matter suggest that following the
privatization of the Roosevelt Hotel in New York, United States (US), the
Privatization Commission has now turned its attention to gathering information
about the PIA-owned Sofitel Scribe Hotel in Paris.
PIA’s foreign assets
The privatization process for PIA's assets, with a combined
valuation of Rs 176 billion across various countries, has been listed for sale,
encompassing properties in Holland, New York, and Pakistan.
Sources indicate that the national flag carrier carries a
debt burden of Rs 742 billion against its assets worth Rs 14.7 billion. A
significant portion of this debt was incurred to cover losses dating back to
2003, resulting in an annual payment obligation of Rs 122 billion for the
airline.
The administration of the national airline has instructed
interested firms in the financial advisory capacity for the Roosevelt Hotel to
submit their applications, along with a $1000 application fee, by October 09.
PIA
appoints CEO amid financial difficulties
It is further reported that applications will be solicited
from various firms for the sale of PIA's remaining assets.
Aviation experts have raised concerns about Pakistan's
economic condition and negative credit rating potentially posing obstacles to
foreign investment in PIA. They emphasized the importance of conducting a
thorough financial assessment to safeguard the country from any potential
losses, given PIA's ownership of valuable properties both domestically and
abroad.
Furthermore, aviation experts have questioned the
transparency of the privatization process, citing the caretaker government's
unusual interest and swift decisions regarding the national flag carrier's
privatization.
PIA’s financial
difficulties
It is worth noting
that Pakistan International Airlines (PIA) is currently grappling with a severe
financial crisis, prompting concerns about its ability to sustain air
operations amid mounting debts.
Recent developments indicate that the bank accounts of
Pakistan International Airlines (PIA) have been unfrozen following the
resolution of disputes between the national flag carrier and the Federal Board
of Revenue (FBR) regarding outstanding dues.
FBR
Freezes PIA bank accounts over unpaid FED
The bank accounts were unfrozen after PIA provided written
assurances and a commitment to settle all pending dues, as confirmed by an FBR
spokesperson. PIA is set to make a payment of Rs 2.5 billion this month in
accordance with the agreement.
While the previous Pakistani administration under Prime
Minister Shehbaz Sharif expressed intentions to privatize the airline, the
current caretaker government has instructed relevant authorities to expedite
the finalization of its restructuring plan.
Source: ARY News