The Privatization Commission Board pre-qualified four potential investors for PIA privatization on Tuesday, while the Cabinet Committee on Privatization (CCoP) approved the transaction structure for New York’s Roosevelt Hotel.
According to a statement issued by the Ministry of Privatization, the 237th meeting of the Privatization Commission Board, chaired by Mohammad Ali, Advisor to the Prime Minister on Privatization, approved the pre-qualification of four parties interested in acquiring stakes in Pakistan International Airlines (PIA).
After a thorough review of the technical, financial, and legal documents of five applicants, the board approved the following four parties:
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- A consortium including Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metrovv Ventures (Pvt.) Ltd.
- A consortium comprising Arif Habib Corporation Ltd., Fatima Fertilizer Company Ltd., The City School (Pvt.) Ltd., and Lake City Holdings (Pvt.) Ltd.
- Fauji Fertilizer Company Ltd.
- Air Blue (Pvt.) Ltd.
These four potential investors for PIA privatization will now move to the next critical phase: the buy-side due diligence. This stage is crucial for ensuring transparency and competitiveness in the privatization process of the national airline.
In a parallel and equally important decision, the Cabinet Committee on Privatization also approved the transaction structure for the Roosevelt Hotel in New York, based on recommendations from the Privatization Commission Board.
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Among three evaluated options—(i) outright sale, (ii) joint venture with multiple options, and (iii) long-term lease—the committee endorsed the joint venture with multiple options model. This structure aims to maximize long-term value for Pakistan while allowing flexibility, multiple exit strategies, and reduced future financial exposure.
The officials stated that these record decisions are indicative of the government’s resolve to continue pursuing its privatization and economic reform efforts in an open, market-oriented, and investor-friendly way.
