Privatisation commission recommends single-transaction sale for Roosevelt Hotel

The Privatisation Commission has recommended a One-Transaction Structure for the sale of the Roosevelt Hotel in New York City, a top official informed the Senate Standing Committee on Privatisation. 

During the committee meeting, Privatisation Secretary Usman Akhtar Bajwa also revealed that a new committee has been formed to engage investors for the upcoming privatisation of Pakistan International Airlines (PIA).

The committee suggested tightening pre-qualification criteria for PIA’s privatisation, aiming to exclude non-operational bidders, such as Blue World City, who had previously participated in a failed attempt to privatise the airline. That effort last year attracted only a single bid from Blue World City, which was significantly lower than the asking price of over $300 million.

The federal government has also appointed Jones Lang LaSalle (JSL) to advise on the sale of PIA’s Roosevelt Hotel.

The government now plans to seek fresh expressions of interest for PIA’s sale by the end of April, according to Muhammad Ali, the PM’s adviser on privatisation. 

Ali mentioned that issues such as taxation and balance sheet concerns, which had previously troubled pre-qualified bidders, have now been addressed, and the criteria for bidding have been revised. 

The government aims to complete the privatisation by the end of 2025, with the sale involving 51 to 100% shares and management control. This move follows the announcement of PIA’s first annual profit in two decades, which officials hope will attract more investors. 

In total, 24 entities are on the privatisation list, to be sold in three phases. The first phase, which includes PIA, the Roosevelt Hotel, and Zarai Tarqiati Bank (ZTB), is scheduled for completion within a year. The second and third phases will span three and five years, respectively, although additional entities may be added to the list after further deliberations by the Cabinet Committee on State-Owned Enterprises (SOEs), headed by the finance minister.

During the meeting, concerns were raised over the inclusion of the Pakistan Minerals Development Corporation in the privatisation list. Senator Umer Farooq suggested that the corporation could be made profitable and should not be privatised. 

However, Bajwa clarified that while the petroleum division had recommended its privatisation, the Cabinet Committee on SOEs is still reviewing the matter.