The federal government has announced plans to fast-track the privatization of Pakistan International Airlines (PIA) and New York’s Roosevelt Hotel as part of its economic reform agenda for the upcoming fiscal year.
Finance Minister Muhammad Aurangzeb, while presenting the federal budget, revealed that completing these high-profile privatizations remains a top priority. “We are committed to concluding the PIA and Roosevelt Hotel transactions this fiscal year,” Aurangzeb stated during his budget speech.
The minister outlined broader privatization plans, including policy and regulatory reforms to facilitate the sale of power distribution companies (Discos) and generation companies (Gencos). “Structural reforms are necessary to reduce the burden on taxpayers and improve efficiency,” he emphasized, adding that the private sector should lead business operations rather than the government.
As part of its austerity measures, the government has approved rightsizing initiatives, merging six divisions into three and streamlining 10 ministries. These moves aim to cut bureaucratic bloat and reduce public sector expenditures.
The privatization push comes as Pakistan seeks to shore up foreign reserves and reduce losses from state-owned enterprises. The Roosevelt Hotel, a prime Manhattan property owned by PIA, has been a longstanding asset on the privatization list, while the national carrier’s sale is expected to attract both domestic and international investors.
Experts suggest these measures could help stabilize Pakistan’s economy, though some caution that the transition must ensure fair valuation and transparent processes.
