Government Receives Rs10 Billion from PIA Privatization, Rs45 Billion Still Pending

Islamabad: The federal government has received Rs10 billion from the privatization of Pakistan International Airlines (PIA), while the remaining Rs45 billion is yet to be paid, officials informed the National Assembly’s Standing Committee.

Briefing the committee, Adviser on Privatization Muhammad Ali said that all terms of the privatization agreement are being implemented as agreed. He stated that the government will receive a total of Rs55 billion from the sale of 100 percent of PIA’s shares.

According to the adviser, the initial payment of Rs10 billion has already been received, while the remaining Rs45 billion will be paid after the transfer of 25 percent of the shares. He added that PIA’s new management has invested Rs80 billion in the company.

Responding to concerns raised by Pakistan Peoples Party (PPP) MNA Sehar Kamran, Muhammad Ali said that an additional Rs45 billion would also be invested in PIA and noted that purchasing new aircraft within a few weeks is not feasible.

He further informed the committee that, as of June 30, 2025, PIA’s total assets were valued at Rs191.534 billion, while its total liabilities stood at Rs182.430 billion, including Rs30.342 billion in employees’ pension liabilities.

The Secretary of the Privatization Commission told the committee that the financial adviser for the PIA privatization process was entitled to Rs1.90 billion in fees, of which Rs1.70 billion has already been paid, while the remaining Rs200 million is yet to be released.

During the meeting, Sehar Kamran questioned how the Rs80 billion investment in PIA had been utilized. Muhammad Ali replied that the shares were transferred immediately after the investment amount was deposited into the company’s account.

The Secretary of the Privatization Commission also briefed the committee on the proposed privatization of the Roosevelt Hotel, saying that investors’ profiles would be evaluated before the process moves forward.

He added that Citibank has been shortlisted as the financial adviser for the Roosevelt Hotel privatization, although two other companies had also participated in the bidding process.