ISLAMABAD: The Privatisation Commission has proposed adopting a One-Transaction Structure for the divestment of the Roosevelt Hotel in New York City, a senior official disclosed during a briefing to the Senate Standing Committee on Privatisation.
The committee, chaired by Senator Afnanullah Khan, was also informed by Privatisation Secretary Usman Akhtar Bajwa that a dedicated team had been formed to engage potential investors in a renewed effort to privatise Pakistan International Airlines (PIA).
During the session on Friday, the committee advised the commission to refine its pre-qualification criteria in order to exclude non-operational entities—such as Blue World City—from taking part in the upcoming bidding process.
This comes after the previous attempt to privatise the airline failed, receiving only one bid from Blue World City that was significantly below the $300 million valuation.
Muhammad Ali, adviser to the Prime Minister on privatisation, told Reuters that the government would issue new expressions of interest by the last week of April.
“In the last bidding round, the pre-qualified entities had issues with tax compliance and financial disclosures.
Those matters have now been resolved,” he said, adding that the pre-qualification benchmarks had also been updated.
PIA Sale
The government is targeting the completion of the PIA privatisation by the end of 2025.
The offer will continue to include 51 to 100 percent shareholding along with management control, although the final stake to be sold will be determined prior to the final bidding stage.
This renewed momentum comes after PIA reported an annual profit for the first time in 20 years.
Privatisation Secretary Bajwa expressed optimism about attracting greater investor interest this time, crediting the International Monetary Fund’s (IMF) backing for the process.
He also shared that global real estate firm Jones Lang LaSalle (JLL) has been appointed to advise on the Roosevelt Hotel’s sale, with various strategic options under consideration.
Read More: Govt Speeds Up Roosevelt Hotel Sale Amid Privatization Push
Bajwa revealed that 24 public sector entities are currently on the privatisation list, scheduled to be sold in three phases.
The first phase—targeted for completion within one year—includes PIA, the Roosevelt Hotel, and Zarai Taraqiati Bank (ZTB).
Entities in the second and third phases will be sold over three and five years, respectively. He added that the Cabinet Committee on State-Owned Enterprises (SOEs), led by the finance minister, is reviewing additional candidates for privatisation.
Minerals Development Corporation
During the meeting, Senator Umer Farooq raised objections to the proposed inclusion of the Pakistan Minerals Development Corporation (PMDC) in the privatisation list, arguing that the organisation has the potential to be a profitable venture and should be retained under government control.
In response, the Privatisation Secretary explained that while the petroleum division has recommended PMDC’s privatisation, the final decision will rest with the Cabinet Committee on SOEs, which is still evaluating the proposal.
The committee also reviewed a public petition submitted by seven senators regarding WAPDA’s reported plan to sell eight operational power plants as scrap.
Officials clarified that a total of nine plants under GENCO holding companies are being evaluated, many of which—specifically GENCO I to IV—have remained non-functional for years.
Also Read: Pakistan Revives PIA Privatization Plans with Fresh Bids; Strategic Reforms
However, the Nandipur and Guddu power plants, which fall under GENCO V, are currently operational and are being considered for privatisation instead of scrapping.
The meeting concluded with a call for more stringent oversight, better investor screening, and comprehensive evaluations before proceeding with the privatisation of strategically important assets.
