Roosevelt hotels, Scribe not part of PIA privatisation: adviser to PM

• Muhammad Ali says Rs 125 billion will be injected into PIA.
• The Hotel Scribe in Paris is not part of the privatization plans.
• Major airports to be auctioned later: PM’s adviser.
  

Adviser to the Prime Minister on Privatization Muhammad Ali on Tuesday clarified that hotels in New York and Paris were not part of the Pakistan International Airlines (PIA) privatization deal.

The consortium led by Arif Habib Corporation Limited acquired a majority stake of 75% in PIA for Rs 135 billion during a bidding ceremony held for the national carrier’s privatization process.

Speaking of Geo News on the program ‘Aaj Shahzeb Khanzada Kay Sath’, Ali said that Hotel Roosevelt in New York and Hotel Scribe in Paris were not part of the transaction. “They will remain with the government. They are part of the PIA Holding Company,” he said.

Ali revealed that the federal cabinet has finalized a plan to enter into a joint venture with a property developer in New York to build a “tall building” at the site for “wealth creation”.

In today’s bidding round, Ali said the government had shown seriousness in completing a long-pending transaction.

Looking ahead, Ali said further progress in privatization is expected in 2026, arguing that privatization will increase tax collection.

He noted that the government’s internal expectations for the bid were up to Rs 120 billion.

“The offer submitted is better for both the government and the buyer,” he said, adding that Rs 125 billion will be directly infused into PIA after the transaction.

Ali said major airports in Lahore, Islamabad and Karachi would be offered to the private sector for management on long-term concessions.

“All the three airports have come to us. The Privatization Commission has started work on it. We are in negotiations with ADB [Asian Development Bank] group to appoint a consultant,” he said.

He said the government plans to start work on Islamabad airport first and then on Karachi and Lahore airports.

Ali clarified that three airports will be offered through open bidding, similar to the current bidding process for PIA.

Government officials said that of the amount paid for PIA’s 75% stake, 92.5% of the proceeds will be directly invested in the national carrier, while the remaining 7.5% — amounting to Rs 10.12 billion — will go to the federal government.

The 25% stake retained by the government has been described as a valuable asset and successful bidders will have the option of acquiring it at a later stage or allowing it to remain with the state, under the privatization framework.