The federal government has transferred 11 Pakistan International Airlines (PIA) properties worth Rs. 14.2 billion to the airline’s new owners. The move marks another major step in the ongoing privatization process and follows the transfer of management control to the private buyers.
The development came to light during a meeting of the Senate Standing Committee on Privatization, where officials shared details of the completed asset transfer and future investment plans.
Eleven Properties Handed Over Under Privatization Deal
According to officials, the transferred assets include four properties in Pakistan and seven overseas properties. Together, these assets are valued at more than Rs. 14.2 billion.
The transferred properties exceed the Rs. 10 billion upfront payment that the buyers made during the first phase of the privatization agreement.
The government completed the transfer of 75 percent of PIA’s shares and management control on June 29 after receiving the initial payment.
Domestic and Overseas Assets Included
The four domestic properties handed over under the agreement include PIA offices located in:
- Rawalpindi
- Peshawar
- Islamabad
- Quetta
Meanwhile, the overseas properties are situated in:
- Mumbai
- New Delhi
- Amsterdam
- Tashkent
- New York
The committee was also informed that 33 remaining PIA properties have been retained by the PIA Holding Company and are not part of the current transfer.
Buyers Commit Rs. 80 Billion Investment
Under the privatization agreement, the new owners have committed to investing Rs. 80 billion in Pakistan International Airlines.
The planned investment will support fleet expansion, aircraft modernization, operational improvements, and the growth of the airline’s route network.
In addition, the buyers have agreed to pay Rs. 45 billion within one year to acquire the remaining 25 percent stake in the national carrier.
Once completed, the total value of the privatization transaction will reach Rs. 55 billion.
Islamabad Planned as Main Operational Hub
During the committee meeting, officials also shared details about the airline’s future operational strategy.
According to the briefing, the new management plans to establish Islamabad as PIA’s primary operational hub. The move forms part of the broader restructuring strategy aimed at improving efficiency and strengthening airline operations.
Roosevelt Hotel Also Under Consideration
The committee also received an update regarding the Roosevelt Hotel in New York.
Officials informed lawmakers that several United States-based banks have expressed interest in acquiring the property.
The government intends to bring the hotel to market by December after completing the required transaction structure.
Foreign Investors Eye Power Distribution Companies
Apart from the PIA privatization, the committee also reviewed progress on the privatization of electricity distribution companies.
According to officials, investors from China, Türkiye, and Saudi Arabia have shown interest in acquiring several power distribution companies.
However, the potential investors have called for stronger regulatory measures and broader reforms in Pakistan’s power sector before moving ahead.
The committee was informed that the deadline for submitting Expressions of Interest for the Faisalabad Electric Supply Company is August 7. The deadline for Gujranwala Electric Supply Company is August 21, while Islamabad Electric Supply Company will close on September 7.
Although investors may submit bids for more than one company, each successful bidder will be allowed to acquire only one electricity distribution company.
Privatization Process Continues
The transfer of PIA’s properties represents another important milestone in the airline’s privatization journey.
With management now under private control and future investment commitments in place, the focus will shift toward fleet expansion, operational improvements, and long-term business growth. At the same time, the government continues to advance its broader privatization agenda by seeking investors for key public sector entities.
