Pakistan’s government has assured the International Monetary Fund (IMF) of its commitment to privatising key state-owned enterprises, with Pakistan International Airlines (PIA) set to be sold by July 2025. However, the future of the Roosevelt Hotel in New York remains uncertain, following the premature termination of a $228 million lease deal by the US. The hotel’s fate is yet to be decided by the Cabinet Committee on Privatisation (CCOP).
During a briefing with the IMF, federal authorities outlined plans to privatise five to seven enterprises, including PIA, three financial institutions, and three power distribution companies. Among the financial institutions, Zarai Taraqiati Bank Limited (ZTBL) is expected to be sold by November 2025, while the First Women Bank Limited is likely to be acquired by the UAE under a government-to-government agreement.
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The Roosevelt Hotel, owned by PIA and located in one of New York’s most expensive areas, faces a loss of $80 million after the New York City government gave notice to end its lease deal one year early. Despite engaging financial advisors, Pakistan has struggled to make a decision on whether to sell or lease the hotel.
PIA’s privatisation has faced challenges, with previous attempts failing due to weak scrutiny and low investor interest. However, the government is gauging market sentiment before issuing an Expression of Interest by the end of this month. Three potential bidders may participate, following IMF agreements to relax certain conditions.
The IMF was also informed of plans to sell three power distribution companies by December 2025. These include companies in Faisalabad, Islamabad, and Gujranwala. However, no power generation companies are expected to be privatised this year.
