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The Senate Standing Committee on Privatization met today under the chairmanship of Senator Dr. Afnan Ullah Khan to review key developments regarding the privatization of Pakistan International Airlines (PIACL), the transfer of its Precision Engineering Complex (PEC) to the Pakistan Air Force (PAF), and the future of PIA’s Roosevelt Hotel in New York.
During the meeting, the CEO of PIA Holding Company briefed the committee that the Precision Engineering Complex a 200-acre defense-related facility employing 223 active and 381 retired staff has long contributed to aircraft part production for Boeing and local defense manufacturing. In line with the federal cabinet’s decision of May 1, PEC will now be transferred to PAF, along with all assets and liabilities. The committee was told that the complex earned Rs. 397 million this year but incurred expenditures exceeding Rs. 850 million.
Regarding PIA’s privatization, Secretary Privatization Commission Usman Bajwa informed the committee that four consortiums have shown interest in the bidding process, with the privatization expected by the end of 2025. However, he noted that major international airlines have been reluctant to participate due to competition concerns.
“The process is in its second phase, and all stakeholders are evaluating liabilities and assets to finalize terms,” Bajwa stated.
The committee also discussed the outsourcing of Islamabad International Airport’s landside services. It was revealed that a Turkish company had initially expressed interest but later withdrew. A Government-to-Government (G2G) deal with the United Arab Emirates is now under consideration for managing the airport’s operations.
On the Roosevelt Hotel, the Privatization Commission confirmed that JLL, the advisory firm previously hired for the hotel’s joint venture transaction, withdrew due to a conflict of interest. The government is now in the process of hiring a new advisor to continue the privatization plan.
