ISLAMABAD (Dunya News) – The government’s plan to privatise Pakistan International Airlines (PIA) has hit a roadblock, as potential bidders have raised fresh demands and objections to the current business framework.
According to details shared in a briefing to the Senate Standing Committee on Privatization, chaired by Senator Afnan Ullah, bidders have refused to pay PIA’s Rs 28 billion tax dues to the FBR and Rs 7 billion owed to the Civil Aviation Authority (CAA), insisting that the government clear these liabilities before any transaction takes place.
Privatization Commission Secretary Usman Bajwa informed the committee that to pay off PIA’s debts, the government has decided to sell the Roosevelt Hotel in New York and another PIA hotel in Paris, expecting to raise over Rs 500 billion from these transactions.
Bajwa added that the Roosevelt Hotel’s old 17-storey building will be demolished and replaced with a 13–14 lakh square-foot modern structure after getting approval from U.S. authorities.
He further said the bidding process for PIA privatization is scheduled for next month, with the goal of completing both bidding and transaction processes by December 2025.
However, Bajwa noted that PIA lacks proper aircraft maintenance facilities, and global aviation companies seem content to let the airline “limp along” in its current state.
The secretary also pointed out that Karachi and Lahore airports require major renovations to expand passenger capacity, while Islamabad International Airport is being outsourced to the UAE on a government-to-government basis.
He revealed that a Turkish company has declined to accept the transaction structure proposed for Islamabad Airport’s outsourcing, while a new financial advisor for Roosevelt Hotel’s leasing will be appointed next month.
Experts say the back-and-forth between the government and bidders has put the privatization drive on shaky ground. Unless both sides meet halfway, the long-awaited sale of PIA could remain grounded for months to come.