Govt Speeds Up Planned Sale of PIA-Owned Roosevelt Hotel

The Cabinet Committee on Privatisation (CCoP) has decided to expedite the sale of New York’s Roosevelt Hotel, a property owned by Pakistan International Airlines, following a high-level meeting Tuesday. Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, who chaired the session, directed the Privatization Commission to accelerate the divestment process of the iconic Manhattan property. The decision comes as New York City is reportedly terminating its lease agreement with the hotel. “We need greater efficiency in handling state-owned assets,” Dar told officials during the meeting, emphasizing the urgency of the Roosevelt Hotel case among ongoing privatisation initiatives. The Privatization Commission board has recommended pursuing the Roosevelt Hotel’s sale through government-to-government negotiations while maintaining flexibility on the transaction structure. The board is keeping three options available: outright sale, joint venture partnership, or a 99-year lease arrangement. The board’s position, however, stands in direct contrast to the advice provided by the financial advisor, who had also presented three possibilities: complete sale of the hotel property, forming a joint venture with a development partner for future building improvements, or establishing a 99-year ground lease with a selected developer. Unlike the board’s open approach, the financial advisor specifically endorsed the joint venture option as the strategy most likely to maximize financial returns. The gathering included key cabinet members from the Finance, Power, and Petroleum ministries, along with secretaries and senior officials from relevant departments. Discussions centered primarily on determining the most practical approach to privatizing the New York hotel. The committee reaffirmed the government’s dedication to streamlining its privatization agenda, which aims to boost economic sustainability and draw foreign investment into Pakistan’s economy. This development represents a significant step in Pakistan’s ongoing efforts to divest state-owned enterprises and assets as part of broader economic reforms.