2 min read
Pakistan International Airlines’ (PIA) privatization process has hit another roadblock as potential buyers have refused to take responsibility for the airline’s massive liabilities owed to the Federal Board of Revenue (FBR) and the Civil Aviation Authority (CAA).
During a Senate Standing Committee on Privatization meeting chaired by Senator Afnan Ullah Khan, Secretary Privatization Commission Usman Bajwa disclosed that PIA currently owes Rs. 28 billion to the FBR and Rs. 7 billion to the CAA. Bidders have demanded revisions to the transaction framework, making it clear that they will not cover these outstanding dues.
According to Bajwa,
“the government plans to settle PIA’s liabilities through proceeds from the sale of the Roosevelt Hotel in New York and another property in Paris, expected to generate over Rs. 500 billion.”
The Roosevelt’s 17-storey structure is scheduled for demolition, with a new high-rise development planned on the site once U.S. authorities grant approval.
The Privatization Commission is expected to appoint a new financial advisor next month to oversee the hotel’s lease-out process. Despite these hurdles, officials maintain that the PIA privatization plan remains on track, with efforts underway to make the deal more attractive for investors.
