Privatisation Division has shortlisted 10 entities which are scheduled to be sold out in financial year 2020-21

ISLAMABAD             -          A parliamentary committee has decided to discuss the privatisation of Roosevelt Hotel (Manhattan, New York) and performance of Pakistan International Airlines (PIA) in next week.

The National Assembly Standing Committee on Privatization has sought detail briefing from the government on the privatization of Roosevelt Hotel (Manhattan, New York).  Meanwhile, the committee would also discuss the performance of the PIA in its meeting to be held on July 15 in parliament house.

The government is continuously facing pressure from the opposition on the privatisation of Roosevelt Hotel. However, the cabinet committee on Privatization (CCoP) had recently decided to redevelop the site of Roosevelt Hotel (Manhattan, New York) into a mixed use (Joint Venture) of primary office tower over retail and condominium. As requested by the Aviation Division, the CCoP had decided to de-notify the Roosevelt Task Force formed earlier under the chairmanship of Minister for Privatization for framing Terms of Reference for leasing the Roosevelt’s site for setting up a joint venture project. The CCoP also directed PC to hire a Financial Adviser to start the process for the transaction in the light of the report of Ms Deloitte from July 2019 which recommended “that the highest and best use of the Roosevelt Hotel Property is to redevelop the site into a mixed use (through Joint Venture) of primarily office tower over retail and condominium”.

An official of Privatization Commission informed that government would not privatize the Roosevelt Hotel. He said that hotel would be run through joint venture. The official informed that government would pursue privatization programme after Covid-19 situation. He said that Privatisation Division has shortlisted 10 entities which are scheduled to be sold out in financial year 2020-21 to achieve budgeted revenue of Rs100 billion. Privatisation Commission is anticipating to sale out much delayed two RLNG power plants 1223 MW Ballocki Power Plant and 1230 MW Haveli Bahadur Power Plants, revival of Pakistan Steel Mills plan, SME bank Limited, Services International Hotel Lahore and Jinnah Convention Centre, Islamabad in the second quarter of next financial year or by end of December 2020. 

The government had budgeted Rs150 billion from privatization programme in last fiscal year. However, it failed to generate any amount due to Covid-19 that had halted the privatization programme.