The Senate Standing Committee on Privatisation on Thursday expressed concern over the absence of major international airlines in the privatisation process of Pakistan International Airlines Corporation Limited (PIACL), even as officials assured that the national flag carrier’s sell-off could be finalised by the end of this year.
The committee, chaired by Senator Dr Afnan Ullah Khan, was briefed on multiple privatisation-related developments, including the progress on PIACL’s privatisation, the Roosevelt Hotel in New York, the Precision Engineering Complex (PEC), and the outsourcing of services at prominent airports.
According to a statement from the Senate Secretariat, the Secretary of the Privatisation Commission (PC) informed the committee that while the PIA opportunity had been marketed across the region, leading regional airline companies were “reluctant to invest in a competitor.”
Officials noted that this marks the second attempt at PIACL’s privatisation. Four consortiums or bidders have expressed interest in the process, and discussions on terms, conditions, and liabilities are underway among stakeholders. “After mutual consensus, the PIACL is expected to be privatised by the end of this year,” the PC secretary informed the committee.
During the briefing, the committee was told that the Precision Engineering Complex — a defence-related manufacturing facility employing 223 personnel — had been transferred from PIA Holding to the Pakistan Air Force (PAF), in line with a Cabinet decision dated May 1. The complex, spanning 200 acres, also carries liabilities of 381 retired employees.
The PC secretary added that the PEC, which has been manufacturing aircraft parts for Boeing since the 1980s and contributing to defence production, generated Rs397 million in revenue this year against expenditures exceeding Rs850 million. “Ownership of the complex, along with all assets and liabilities, will now rest with the Pakistan Air Force,” he said.
The committee also reviewed the status of outsourcing landside services at Islamabad International Airport. Officials revealed that a Turkish company had initially joined the bidding process but withdrew due to unresolved differences over the share ratio with the government. Discussions are now underway with the United Arab Emirates (UAE) for a potential government-to-government (G2G) management agreement.
Senator Afnan Ullah Khan recommended that these services be outsourced to a reputable international firm capable of delivering efficient operations and world-class facilities in line with global standards.
Meanwhile, the PC secretary updated the committee on the Roosevelt Hotel’s privatisation in New York. Financial advisory firm JLL, appointed to assess the 650,000-square-foot, 17-storey property, had earlier proposed a joint venture structure with multiple exit options for Pakistan. Although the proposal was approved by the Federal Cabinet on July 8, the firm later withdrew due to a conflict of interest, and the government is now seeking a new advisor to proceed with the process.
The committee chairman commended the successful privatisation of the First Women Bank Limited (FWBL), which was acquired by the UAE-based International Holding Company (IHC) along with all its employees and liabilities.
He also directed the authorities to expedite the resolution of complaints and pending pension cases of retired PIACL employees.
