PIA, Roosevelt Hotel among 10 entities to be privatised in first phase

ISLAMABAD: The government has decided to privatise 24 state-owned entities in phases over the next five years.

In the first phase, privatisation of 10 state-owned entities including PIA, Roosevelt Hotel, and First Women Bank will be completed within a year.

Privatisation Minister Abdul Aleem Khan presented the list of 24 state-owned entities slated for privatisation in the National Assembly.

In a written response, he said that the privatisation will be carried out in three phases.

In the first phase, PIA, Roosevelt Hotel, First Women Bank, House Building Finance Corporation and Zarai Taraqiati Bank will be privatised within one year.

Earlier, the Privatisation Commission told a Senate panel that the new buyer of Pakistan International Airlines (PIA) will be required to invest Rs70 billion over a five-year period as part of the national carrier’s revised privatisation plan.

The written response further said that in the second phase, 13 state-owned entities will be privatised within three years, while in the third phase, Postal Life Insurance Company will be privatised within five years.

Abdul Aleem said that the first phase will also include the privatisation of three distribution companies (DISCOs), including IESCO.

In the second phase, State Life Insurance, Utility Stores Corporation, and four generation companies (GENCOs) will be privatised, along with six more DISCOs including LESCO.

It is worth noting that the federal government attempted to privatise PIA last year but failed due to bids falling far below expectations.

The privatisation board rejected the offers received for the national airline.

It should be recalled that bids for PIA’s privatisation were opened on October 31 last year. The government, which was seeking Rs85 billion for 60 per cent of the airline’s shares, received bids worth only Rs10 billion, which were deemed unacceptable.