ISLAMABAD: The federal government decided to privatise the Roosevelt Hotel as the letter of intent (LOI) would be issued in the first week of August, ARY News reported.
The Privatisation Commission approved the hotel’s privatisation through a joint venture or lease for 99 years.
Meanwhile, the government clarified that the privatisation of power distribution companies will not be possible before 2026.
The Privatization Commission also decided that the Pakistan International Airlines (PIA) would not be privatised, if a bid lower than the reference price is received.
Minister for Privatisation Abdul Aleem Khan said that only 21 of PIA’s 33 aircraft are operational, and the condition of the airline’s current fleet is deplorable.
Briefing the media persons regarding the government’s policy, plan and strategy for privatisation, the minsiter said that the government is committed to openness and transparency in all of the privatization transactions of loss making enterprises and all the bidding would be telecast live for everyone to see.
The minister also apprised the media representatives on the developments of the ongoing transactions including PIACL, Roosevelt Hotel, HBFC and the First Women Bank, said a press release.
He said that PIA offered a very good opportunity for its buyer to earn profit given that PIA has great potential that only requires fresh investment. He praised the pilots of the national airline for being thorough professionals and experts in their field.
The minister lamented the delays in the privatisation of certain entities in the past and pointed to the fact that these delays have already inflicted losses of billions of rupees and apprised that the government was ready for the privatization of Distribution Companies (DISCOs) where three entities including HESCO, PESCO and SEPCO would be offered for long term concession.
He said that the six entities including IESCO, FESCO, GEPCO, LESCO, MEPCO and HAZECO would be completely privatized through sale and the Ministry of Privatization would initiate the process in due course in consultation with Power Division.
The government’s failure to privatise PIA has resulted in a loss of Rs 850 billion to the national exchequer. The government has also faced criticism for its handling of other privatization projects, including the Pakistan Steel Mills and the Reko Diq project. If the government decides to keep PIA under its ownership, it may be forced to shut down the airline. The Federal Minister for Privatization has accused everyone involved in the privatization process of contributing to the country’s losses
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