Islamabad, Nov 16: The Cabinet Committee on Privatization, led by Deputy Prime Minister Ishaq Dar, decided on Friday to reject the Privatization Commission Board’s suggestion to accept Blue World City’s bid for Pakistan International Airlines (PIA).
The company had proposed acquiring 60% of PIA’s shares for Rs. 10 billion.
Instead, the committee resolved that the privatization or sale of PIA would proceed through a government-to-government (G2G) arrangement.
The committee expressed satisfaction with the Aviation Division’s assessment of PIA’s financial status.
Additionally, a special panel, headed by the Minister of State for Finance, has been formed to supervise the privatization of the Roosevelt Hotel.
This panel will explore transaction options and suggest a legally appropriate course of action.
Regarding the Services International Hotel, the committee directed that all pending issues related to its sale be resolved swiftly.
It emphasized the importance of finalizing the agreement ahead of the next meeting.
Additionally, the committee emphasized expediting the sale of the Services International Hotel, another state-owned property.
It directed relevant stakeholders to resolve all outstanding issues and finalize the agreement before the next committee meeting.
The urgency reflects the government’s commitment to concluding the privatization process efficiently and transparently.
These measures indicate the government’s broader privatization strategy, aimed at reducing financial liabilities, improving governance, and attracting foreign investment.
The rejection of Blue World City’s bid for PIA underscores the government’s intent to adopt a methodical and collaborative approach to privatization for optimal outcomes.
