The Privatisation Commission has proposed a single-transaction sale structure for the Roosevelt Hotel in New York City. This recommendation came from Privatisation Secretary Usman Akhtar Bajwa during a recent Senate Standing Committee meeting. Bajwa also announced the formation of a new committee. This committee will focus on attracting investors for the privatisation of Pakistan International Airlines (PIA).
To enhance the bidding process for PIA, the new committee recommends stricter pre-qualification criteria. They aim to filter out non-operational bidders, including Blue World City. Last year, Blue World City submitted a bid, but it was the only one and fell below the asking price of over $300 million. Therefore, the government seeks serious bidders this time.
Furthermore, the federal government has appointed Jones Lang LaSalle (JLL) to assist with the Roosevelt Hotel sale. Fresh expressions of interest for PIA’s sale are expected by the end of April. Muhammad Ali, the Prime Minister’s advisor on privatisation, has assured that past issues regarding taxes and financial concerns have been resolved. Thus, the revised criteria should attract more investors.
Overall, the government plans to complete the privatisation process by the end of 2025. This effort will involve selling 51 to 100% of shares and management control. Currently, there are 24 entities on the privatisation list. The first phase includes PIA and the Roosevelt Hotel and is set to finish within a year. Meanwhile, concerns were raised about privatising the Pakistan Minerals Development Corporation, with discussions ongoing on its future.