Govt Transfers Rs. 14.2 Billion Worth of PIA Properties to New Owners

The government has transferred 11 properties worth Rs. 14.2 billion, including seven overseas assets, to the new owners of Pakistan International Airlines (PIA) as part of the airline’s privatization deal, the Senate Standing Committee on Privatization was informed on Tuesday.

Privatization Commission Secretary Usman Bajwa told the committee that the transferred assets include four properties in Pakistan and seven located in India, the Netherlands, Uzbekistan, and the United States. The value of these properties exceeds the Rs. 10 billion upfront payment made by the buyers for the first phase of the transaction.

The government completed the transfer of 75 percent of PIA’s shares and management control on June 29 after receiving Rs. 10 billion. Under the agreement, the buyers will inject Rs. 80 billion into the airline to support fleet expansion, modernization, operational improvements, and network growth.

They have also committed to pay an additional Rs. 45 billion within one year to acquire the remaining 25 percent stake, bringing the total transaction value to Rs. 55 billion.

The four domestic properties transferred include PIA offices in Rawalpindi, Peshawar, Islamabad, and Quetta, while the overseas assets comprise properties in Mumbai, New Delhi, Amsterdam, Tashkent, and New York. The committee was also informed that the remaining 33 PIA properties have been retained by the PIA Holding Company.

Bajwa said the new management intends to make Islamabad its main operational hub. He also told lawmakers that several United States based banks have shown interest in acquiring the Roosevelt Hotel in New York, with the government aiming to bring the property to market by December after finalizing its transaction structure.

Separately, the committee was informed that investors from China, Türkiye, and Saudi Arabia have expressed interest in acquiring electricity distribution companies but have called for stronger regulation and broader power sector reforms.

Expressions of Interest for Faisalabad Electric Supply Company will close on August 7, followed by Gujranwala on August 21 and Islamabad on September 7. Although investors may bid for multiple companies, each bidder will be allowed to acquire only one distribution company.