PIA bidders shortlisted, Roosevelt JV gets green light

July 08, 2025 (MLN): Four investor groups have been cleared to advance in the privatization of Pakistan International Airlines Corp., marking a critical step in efforts to offload the struggling flag carrier.

Meanwhile, officials approved a joint venture structure for the Roosevelt Hotel in New York, favoring long-term value over an outright sale.

At its 237th meeting, the Privatisation Commission Board, chaired by Muhammad Ali, approved the prequalification of two powerful consortiums and two individual firms for the PIA transaction.

The shortlisted parties include a group led by Lucky Cement, Hub Power Holdings, Kohat Cement, and Metro Ventures, as well as another featuring Arif Habib Corporation, Fatima Fertilizer, City Schools, and Lake City Holdings. Fauji Fertilizer Company and Air Blue also made the cut.

The process now shifts to buy-side due diligence, a crucial phase ahead of formal bids. With PIA saddled by heavy debt and operational inefficiencies, the privatization is seen as a litmus test for the broader sell-off strategy.

Separately, the Cabinet Committee on Privatisation approved a joint venture model for the Roosevelt Hotel.

The plan, selected over outright sale or long-term leasing, is designed to maximize returns, preserve future exit options, and contain fiscal exposure.

The Manhattan property, owned via Pakistan International Airlines Investment Ltd., has long been flagged for monetization.

The approved structure is expected to attract strategic partners without immediately relinquishing full ownership.

This option is aimed at maximizing long-term value for the country while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure.

These milestone decisions reflect the Government’s strong commitment to advancing its economic reform and privatisation agenda in a transparent, market-driven, and investor-friendly manner.

Copyright Mettis Link News