PIA's two crucial hotels in US and France not part of privatisation
deal
Pakistan International Airlines' (PIA) landmark overseas
assets, including New York's Roosevelt
Hotel and Paris' Scribe
Hotel, were not transferred to the airline's new private owners under the
privatisation agreement and remain under government ownership, according to
official privatisation documents.
The clarification comes amid online speculation
suggesting that the airline's new owners could sell the iconic properties to
repay outstanding debt. However, the transaction documents indicate that
ownership of these assets remains with Pakistan International Airlines Holding
Company Limited (PIAHCL), the government-owned entity established to retain
PIA's non-core assets and legacy liabilities.
Key Overseas Assets Remain With PIAHCL
According to the Privatisation
Commission's records, PIAHCL retained 36 domestic and international
properties following the airline's privatisation, while only 11 properties were
included in the transaction with the private investors.
Read More Privatization
of PIA-owned Scribe Hotel in the pipeline
The retained portfolio includes the Roosevelt Hotel in
New York, the Scribe Hotel in Paris, the Avant Hotel in Karachi, sales offices,
warehouses, housing colonies, a farmhouse, and hundreds of acres of land across
Pakistan, the United States and France.
In addition, seven properties were transferred to PIAHCL
through S.R.O. 475(I)/2026, issued on March 4, 2026. These include the PIA
Planetariums in Karachi, Lahore and Peshawar, the Jahangir Sports Complex and
Football Ground in Karachi, the Dayal Singh Mansion office in Lahore, and Plot
No. 57 in Islamabad's Blue Area. The Blue Area property alone is estimated to
be worth around Rs12 billion.
Only Limited Assets Included in Sale
The privatisation package covered only 11 properties,
including booking and sales offices in Islamabad, Rawalpindi, Peshawar and
Quetta, along with overseas offices located in Mumbai, New Delhi, Amsterdam,
Tashkent and New York.
Domestic properties were valued in Pakistani rupees,
while overseas assets were assessed in their respective local currencies.
Can the Assets Be Sold?
The privatisation documents state that assets retained
by PIAHCL may be utilised to settle the holding company's outstanding
liabilities, giving the government the option to monetise selected properties
through a sale, lease, redevelopment or other commercial arrangements.
However, the documents do not indicate that any of the
retained assets have been put up for sale, nor do they grant the airline's new
private owners the authority to dispose of them.
As a result, prominent properties such as the Roosevelt
Hotel and Scribe Hotel remain outside the control of the privatised airline.
Government Plans Further Stake Sale
PIAHCL was created to hold PIA's non-core assets and
legacy debt while separating the airline's operational business to facilitate
privatisation.
The government is also targeting the sale of its
remaining 25% stake in PIA during the current fiscal year, with expected
proceeds of approximately Rs45 billion, according to the privatisation
documents.
Read More US
terminates $220 million agreement for PIA’s Roosevelt Hotel
PIA has formally come under the control of PIA Equity
Ltd, a special-purpose vehicle of the Arif Habib-led consortium, following the
completion of all required regulatory approvals.
The Rs180 billion transaction forms part of the
government's broader privatisation programme aimed at reviving the loss-making
national carrier. Under the agreement, Rs55 billion will be paid to the
government, while Rs125 billion will be invested in PIA to support financial
restructuring, fleet modernisation, route expansion and service improvements.
The acquiring consortium comprises Arif Habib Group,
Fatima Fertiliser Company, Fauji Fertiliser Company, Lake City Holdings, The
City School, and AKD Group Holdings.
Earlier this year, the Arif Habib-led consortium secured the acquisition
after submitting the highest bid of Rs135 billion, narrowly surpassing the Lucky
Group consortium's offer of Rs134 billion.
Source:
Pakistan Observer