Business

Govt Rejects Blue World City’s PIA Bid, Opts for G2G Mechanism

The Cabinet Committee on Privatization under the chairmanship of Deputy Prime Minister Ishaq Dar on Friday approved the Privatization Commission Board’s recommendation to reject Blue World City’s bid to acquire Pakistan International Airlines (PIA).

The company had offered Rs. 10 billion for 60 percent of PIA’s shares. The committee decided that the privatization or sale of PIA would proceed through an inter-governmental (G2G) mechanism.

The Aviation Division’s review of PIA’s financial condition was met with satisfaction by the committee.  Meanwhile, a dedicated panel under the Minister of State for Finance has been constituted to oversee the privatization of the Roosevelt Hotel. The panel will evaluate transaction options and propose a legally viable procedure.

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The committee further instructed that all outstanding issues related to the sale of Services International Hotel be resolved promptly. It emphasized finalizing the agreement before the next meeting.

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ProPK Staff