PIA Privatisation: Buyers Receive Rs14.2 Billion in Properties.

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ISLAMABAD: In a major milestone for the country’s landmark aviation divestment, the federal government has officially transferred 11 prime properties valued at Rs. 14.2 billion to the new majority owners of Pakistan International Airlines (PIA).

The transfer includes a mix of high-value commercial assets situated both across Pakistan and in major cities abroad, handed over as part of the formal privatization package.

Details of the Property Portfolio

The Privatisation Commission disclosed the complete breakdown of the 11 transferred properties during a high-level Senate Standing Committee briefing. These assets have been included in the transaction where the private buyers acquired an initial 75% controlling stake in the national flag carrier.

According to Privatisation Secretary Usman Bajwa, the real estate portfolio consists of four local commercial landmarks and seven high-profile international holdings:

Local Properties (Valued at Rs. 10.64 Billion)

• Peshawar Sales Office: Rs. 5.1 billion
• Islamabad Sales Office (Jinnah Avenue): Rs. 2.4 billion
• Rawalpindi PIA Booking Office (Mall Road): Rs. 2.3 billion
• Quetta Office: Rs. 837.4 million

International Properties

• India: Commercial holdings in Mumbai and New Delhi.
• Netherlands: Three properties in Amsterdam.
• Uzbekistan: One property in Tashkent.
• United States: One property in New York.

The remaining 33 state-owned properties will remain under the custody and ownership of the PIA Holding Company.

The Financial Architecture of the Deal

The transfer of Rs. 14.2 billion worth of real estate assets stands out against the initial cash parameters of the transaction. The private buyers secured the initial 75% stake in PIACL with an immediate Rs. 10 billion cash payment.

Under the broader divestment agreement, the government sold a 100% stake in the airline for a total of Rs. 55 billion. The transfer of the remaining 25% shareholding, along with the pending Rs. 45 billion payment, is scheduled to be completed within one year.

Strategic Revival and Management Transition

Following the official divestment on June 29, 2026, operational and management control of PIA has successfully shifted to the purchaser. To support long-term operational viability, the new management has committed to several structural updates:

• Fresh Equity Infusion: The buyers have injected Rs. 80 billion in fresh equity directly into PIACL to fuel urgent fleet expansion, route network optimization, and critical technology upgrades.
• Headquarters Realignment: The new owners have announced plans to establish Islamabad as the airline’s primary commercial and business hub.

Update on the Roosevelt Hotel (New York)

During the briefing, chaired by PML-N Senator Afnan Ullah Khan, the committee also reviewed the status of the iconic Roosevelt Hotel in New York. While the landmark hotel remains separated from the core airline sale, the commission revealed that multiple US-based financial institutions have shown keen interest in its redevelopment.

The government plans to finalize the joint venture structure and launch the international marketing campaign for the Roosevelt Hotel by December 2026.