PIA buyers receive 11 properties worth Rs14.2 billion under privatisation deal

The federal government has transferred 11 Pakistan International Airlines properties valued at Rs14.2 billion to the consortium that acquired management control and a 75% stake in PIACL, the Privatisation Commission informed the Senate Standing Committee on Privatisation on Tuesday.

According to a report by The Express Tribune, Privatisation Secretary Usman Bajwa told the Senate panel that the transferred assets were selected from a total portfolio of 44 properties. The remaining 33 properties have been retained by PIA Holding Company.

The value of the transferred properties is Rs4.2 billion higher than the Rs10 billion in sale proceeds paid to the government at the first closing of the transaction.

The four local properties transferred include the PIA Booking Office on Mall Road, Rawalpindi, valued at Rs2.3 billion; the Peshawar Sales Office on Mall, Arbab Road, valued at Rs5.1 billion; the PIA Sales Office on Jinnah Avenue, Blue Area, Islamabad, valued at Rs2.4 billion; and the Quetta Sales Office building on Shahra Hali, Cantonment, valued at Rs837.4 million.

Seven overseas assets were also included in the deal.

In India, the consortium received Flat No. 32 on the third floor of Jolly Maker-III at J.D. Somani Marg, Cuffe Parade, Mumbai, valued at Indian Rs112.5 million, and the fifth and sixth floors of Narain Manzil in New Delhi, valued at Indian Rs121.92 million.

Three Amsterdam properties were transferred: Leidsestraat 17, valued at €2.1 million; Koningsvaren 109, valued at €750,000; and Van Nijenrodeweg 835, valued at €583,000.

The transaction also included a property in Tashkent valued at four billion Uzbekistani som and a residence at 55 Saxon Woods Road, Scarsdale, New York, valued at $1.7 million.

Bajwa also informed the committee, chaired by Senator Afnan Ullah Khan, that PIA’s new management plans to make Islamabad its main operational hub.

The government completed the divestment of 75% of PIACL on June 29, 2026, and handed management control to the purchaser. The consortium also injected Rs80 billion as fresh equity into the airline for fleet expansion and modernisation, route development, operational improvements and customer service.

Under the transaction structure, the purchaser has exercised its intent to acquire the remaining 25% stake within 12 months of the first closing. 

The second phase involves an additional payment of Rs45 billion to the government, taking the total cash consideration for 100% ownership to Rs55 billion.