The Roosevelt Hotel in New York and the Scribe Hotel in Paris are not part of Pakistan International Airlines’ (PIA) privatisation deal, Prime Minister’s Adviser on Privatisation Muhammad Ali clarified on Tuesday.
PIA Privatisation Transaction Completed
The Arif Habib Corporation Limited–led consortium acquired a 75% majority stake in PIA for Rs135 billion during the privatisation bidding ceremony of the national flag carrier. Muhammad Ali emphasized that the Roosevelt and Scribe hotels will remain under government ownership as part of the PIA Holding Company.
“The hotels are not included in the privatisation deal and will continue under government control,” Ali said on Geo News programme Aaj Shahzeb Khanzada Kay Sath.
Plans for Roosevelt Hotel Site
Ali revealed that the federal cabinet has approved a joint venture with a New York real estate developer. The project will involve the construction of a high-rise on the Roosevelt Hotel site to generate wealth and strengthen government assets.
Government Achieves Long-Pending Transaction
Ali described the successful PIA bid as evidence of the government’s commitment to completing long-pending transactions. He added that the government expects further privatisation progress in 2026, which would also help increase tax collection.
He noted that the government had internally anticipated a bid of up to Rs120 billion. “The final bid of Rs135 billion benefits both the government and the buyer,” he said. Ali added that Rs125 billion will be injected directly into PIA following the transaction.
Airports to Be Privatised Under Long-Term Concessions
Ali also announced plans to offer major airports in Islamabad, Karachi, and Lahore to private investors under long-term management concessions. He said the government will start with Islamabad airport, followed by Karachi and Lahore.
“All three airports will be offered through open bidding, similar to the PIA privatisation process,” Ali stated. The Privatisation Commission has already initiated negotiations with the Asian Development Bank (ADB) to appoint advisers for these projects.
Allocation of Proceeds and Government Stake
Of the total amount received from the PIA privatisation, 92.5% will be reinvested into the national airline, while the remaining 7.5% (Rs10.12 billion) will go to the federal government.
The government will retain a 25% stake in PIA, considered a valuable asset. Successful bidders may acquire this remaining stake later or allow it to remain with the state, according to the privatisation framework.
