The Privatisation Commission has paid $4.3 million to its financial advisor, Ernst & Young, for expenses related to the privatisation of Pakistan International Airlines Corporation Limited (PIACL) during 2023-24, with the remaining $2.5 million to be disbursed later, as the government prepares to invite expressions of interest (EoIs) for PIA’s privatisation in early March, aiming to complete the transfer to private ownership before the fiscal year ends.
During a meeting of the Standing Committee on Privatisation, chaired by MNA Muhammad Farooq Sattar, the Privatisation Commission Secretary provided an update on the financial expenditures related to PIACL’s sell-off.
The process, which previously stalled, gained momentum after the International Monetary Fund (IMF) granted a waiver on the 18% general sales tax for new aircraft acquisitions and permitted the government to absorb PIA’s Rs45 billion negative equity.
The committee was also updated on PIA’s real estate assets, which include 26 properties under PIA Holdings and five owned directly by the airline. Among these is a prime plot in Islamabad’s Blue Area, valued between Rs10-12 billion, currently under review.
Additionally, PIA Holdings owns seven overseas properties, including the Roosevelt Hotel in New York and the Scribe Hotel in Paris. The Roosevelt Hotel’s lease is set to expire in May, and steps to vacate the property will begin with a three-month notice period.
The committee instructed the commission to provide a detailed breakdown of properties transferred to holding companies.
The committee also reviewed the Privatisation Commission (Amendment) Bill, 2024, and raised concerns over Clause 4, Section 7(4), questioning whether the prime minister could be granted exclusive decision-making authority in the privatisation process instead of the federal cabinet. The Ministry of Law was directed to submit a written clarification in the next meeting.
Discussions also focused on the privatisation of Pakistan Engineering Company (PECO), which was added to the privatisation list in August 2024. The secretary informed the committee that PECO currently has no active production line and employs only 32 staff members.
While the National Investment Trust (NIT) holds a 23% stake in PECO, concerns were raised over unclear share transactions on the stock exchange. Private sector representatives highlighted that PECO once produced aircraft parts in the 1960s and that under private management, its losses had reduced from Rs2 billion to Rs700 million.
The committee instructed the Privatisation Commission Secretary to consult with the Secretaries of Industries and Law and submit a detailed report on PECO’s situation within 40 days. Additionally, the Ministry of Industries was directed to ensure that PECO employees receive their salaries before Eid.
The meeting was attended by MNAs Anwar ul Haq Chaudhry, Abdul Qadir Khan, Asiya Naz Tanoli, Nazir Ahmed Bhugio, Mubarak Zeb, Sehar Kamran, and Mehboob Shah, along with senior officials from the ministry.
