With significant approvals for PIA and Roosevelt Hotel, the government moves forward with its privatization drive.

Islamabad: Two significant moves by the Privatization Commission (PC) indicate that strategic asset divestitures are moving forward at a rapid pace. The Cabinet Committee on Privatization (CCOP) has approved the transaction structure for the Roosevelt Hotel in New York, choosing a joint venture model to maximize national returns, while the PC Board has prequalified four investor groups for the sale of Pakistan International Airlines Corporation Limited (PIACL).

The PC Board examined and authorized the prequalification of four of the five interested parties for PIACL’s privatization at its 237th meeting, which was presided over by Muhammad Ali, the Prime Minister’s Privatization Adviser and Chairman of the Privatization Commission. After a thorough evaluation of the Statements of Qualification (SOQs) in relation to predetermined technical, financial, and documentary standards, the decision was made.

Among the prequalified investors are:

A partnership between Kohat Cement Company Limited, Lucky Cement Limited, Hub Power Holdings Limited, and Metro Ventures (Private) Limited
A partnership between Lake City Holdings (Private) Limited, City Schools (Private) Limited, Arif Habib Corporation Limited, and Fatima Fertilizer Company Limited
The Limited Fauji Fertilizer Company
Private Air Blue Limited These organizations will now move on to the buy-side due diligence phase, which is an essential step in ensuring a competitive and transparent privatization process. The transaction structure for the Roosevelt Hotel in New York has also been approved by the CCOP. The government chose a flexible joint venture model over an outright sale or long-term lease based on suggestions made by the Privatization Commission and its Financial Advisor. The authorized structure seeks to minimize financial risks, maintain strategic flexibility, and provide the best long-term value. Both choices are regarded as crucial steps in the government’s larger plan to carry out economic reforms and draw in private capital via mechanisms based on the market.