ISLAMABAD: Adviser to the Prime Minister on Privatisation Muhammad Ali clarified that the Roosevelt Hotel in New York and the Scribe Hotel in Paris were not included in the Pakistan International Airlines (PIA) privatisation deal.
The Arif Habib Corporation-led consortium acquired a 75% stake in PIA for Rs135 billion during the privatisation bidding ceremony. Ali said the two hotels will remain with the government as part of the PIA Holding Company.
He added that the federal cabinet has approved a plan to enter a joint venture with a New York real estate developer to construct a high-rise on the site for wealth creation.
Talking about the bidding, Ali said the government had shown seriousness by completing a long-pending transaction. He added that further privatisation progress is expected in 2026 and argued that privatisation would help increase tax collection.
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Ali noted that the government had expected bids up to Rs120 billion, but the received bid was better for both the government and the buyer. He said Rs125 billion will be invested directly into PIA from the transaction.
He also announced that major airports in Lahore, Islamabad, and Karachi will be offered to the private sector for long-term management under open bidding, similar to the PIA deal. Negotiations with the Asian Development Bank for advisory support are underway. The government plans to start with Islamabad airport, followed by Karachi and Lahore airports.
According to officials, 92.5% of the proceeds from the 75% stake will go directly into PIA, while the remaining 7.5%, or Rs10.12 billion, will be transferred to the federal government. The government will retain a 25% stake, which may be sold later or kept as a valuable state asset.
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