ISLAMABAD: The Pakistani government has confirmed to the International Monetary Fund (IMF) that it will privatize Pakistan International Airlines (PIA) by July 2025, alongside multiple other public enterprises. However, the future of Roosevelt Hotel in New York remains uncertain, especially after the U.S. government decided to terminate a $228 million lease deal prematurely.

Key Highlights of the Privatisation Plan

1. PIA Sell-Off by July 2025
   • The government aims to finalize the privatisation of PIA within the next four months.
   • The IMF was briefed that the privatisation process has faced multiple failures due to weak scrutiny and unappealing bids.
   • Three potential bidders have shown interest after the IMF agreed to waive off 18% sales tax and remove Rs45 billion liabilities from PIA’s balance sheet.
   • The government will issue the Expression of Interest (EOI) for investors by the end of this month.
2. Roosevelt Hotel’s Uncertain Future
   • The New York City government ended the lease agreement a year early, causing a potential $80 million loss for Pakistan.
   • The hotel, owned by PIA, sits in one of the world’s most expensive areas and has 1,025 rooms.
   • Pakistan hired financial advisors for the privatisation but remains undecided between selling outright, leasing, or developing a joint venture.
   • Saudi Arabia had previously shown interest but did not proceed with a formal acquisition bid.
3. Privatisation of Other State-Owned Enterprises
   • The government has set November 2025 as the deadline to privatise the Zarai Taraqiati Bank Limited (ZTBL).
   • Three power distribution companies—Faisalabad, Islamabad, and Gujranwala—are also expected to be privatised by December 2025.
   • First Women Bank Limited may be acquired by the UAE government under a government-to-government agreement.

Challenges in the Privatisation Process

Despite repeated attempts, Pakistan’s privatisation efforts have faced delays due to lack of investor confidence, weak financial transparency, and unsuccessful past bids. The IMF remains skeptical about the process, urging greater financial clarity and investor-friendly policies.

The success of PIA’s privatisation will be a major test for the government, as previous attempts have failed to attract competitive bids. However, with the IMF’s relaxed conditions and renewed interest from potential investors, the government hopes for a smoother transition.

Final Thoughts

Pakistan’s privatisation strategy aims to reduce financial losses and improve efficiency in struggling state-owned enterprises. However, uncertainty over Roosevelt Hotel and weak investor response to PIA’s privatisation remain key challenges.

Would privatising PIA and Roosevelt Hotel be the right move for Pakistan’s economy? Share your thoughts in the comments!