Roosevelt, Scribe hotels not part of PIA privatisation: PM's adviser

• Muhammad Ali says Rs125bn to be injected into PIA.
• Scribe Hotel in Paris not part of privatisation plans.
• Major airports to be auctioned later: PM's adviser.
  

Adviser to the Prime Minister on Privatisation Muhammad Ali on Tuesday clarified that the hotels in New York and Paris were not part of the Pakistan International Airlines’ (PIA) privatisation deal.

The Arif Habib Corporation Limited–led consortium acquired a majority 75% stake in PIA for Rs135 billion during a bidding ceremony held for the privatisation process of the national flag carrier.

Speaking on Geo News programme 'Aaj Shahzeb Khanzada Kay Sath', Ali said that the Roosevelt Hotel in New York and the Scribe Hotel in Paris were not part of the transaction. "They will remain with the government. They are part of the PIA Holding Company," he said.

Ali revealed that the federal cabinet has finalised a plan to enter a joint venture with a New York real estate developer for the construction of a "high-rise" on the site for "wealth creation".

On today's bidding round, Ali said that the government had demonstrated seriousness by completing a long-pending transaction.

Looking ahead, Ali said further progress on privatisation was expected in 2026, arguing that privatisation would increase tax collection.

He noted that the government's internal expectation for the bid was up to Rs120 billion.

"The bid that came in is better for both the government and the buyer," he said, adding that Rs125 billion would be injected directly into PIA following the transaction.

Ali said that major airports in Lahore, Islamabad and Karachi would be offered to the private sector for management under long-term concessions.

"All three airports have come to us. The Privatisation Commission has begun work on it. We are in negotiations with the ADB [Asian Development Bank] team for the appointment as adviser," he said.

He said the government planned to begin work on the Islamabad airport first, followed by the Karachi and Lahore airports.

Ali clarified that three airports would be offered through open bidding, similar to today's bidding process for the PIA.

Government officials have said that of the amount paid for the 75% stake in PIA, 92.5% of the proceeds will be invested directly into the national flag carrier, while the remaining 7.5% — amounting to Rs10.12 billion — will be transferred to the federal government.

The government-retained 25% stake has been termed a valuable asset, and successful bidders will have the option to acquire it at a later stage or allow it to remain with the state, according to the privatisation framework.