Islamabad, Feb 25: The National Assembly’s Standing Committee on Privatization was informed on Tuesday that the privatization of Pakistan International Airlines (PIA) remains incomplete despite payments exceeding $4.3 million (Rs. 1.9 billion) to the Financial Advisor.
Secretary Privatization Commission Usman Bajwa briefed the committee that Rs. 1.2 billion 63 percent of the financial advisory fee has been paid so far, with the total due amount standing at $6.9 million. He clarified that the Financial Advisor would receive payments for the second phase of privatization only after the sale is completed. The committee was also informed that the previous bid for PIA was deemed unacceptable.
The discussions extended to PIA’s assets, revealing that PIA Holding owns 26 properties, while PIA-ACL possesses five. The Roosevelt Hotel in New York and the Skype Hotel in Paris, both under PIA Holding, were briefly discussed. The committee was informed that the Roosevelt Hotel’s contract is set to expire in May, after which it will be vacated following a three-month notice period.
Separately, the committee strongly opposed the closure of Utility Stores. Members argued that the abrupt withdrawal of government subsidies in August 2024 pushed the institution into financial distress, despite previously generating Rs. 1.5 billion in annual profits and contributing Rs. 25 billion in taxes.
The government had allocated Rs. 60 billion in subsidies for Utility Stores in the current budget. Officials highlighted that while the country’s 400,000+ retailers collectively pay Rs. 114 billion in taxes, Utility Stores despite comprising only one percent of the retail sector contribute 20 percent more in taxes.
The committee discussed the possibility of transitioning the institution from a subsidy-dependent model to a commercially sustainable one.
