PIA-owned Scribe Hotel listed for privatisation: sources

KARACHI: After the privatisation of the Roosevelt Hotel, the privatisation commission also sought the details of the PIA-owned Scribe Hotel in Paris, ARY news reported, citing sources.

According to the details, the privatisation commission sought details of the assets, finances, and management agreements from Pakistan International Airlines (PIA).

Sources close to the development claimed that after the privatisation process of the Roosevelt Hotel in New York, United States (US), the privatisation commission also sought details of the PIA-owned Sofitel Scribe Hotel in Paris.

The privatisation process of the PIA’s assets – valued a total of Rs 176 billion – in various countries has been listed for sale, including the property in Holland, New York and Pakistan.

Sources reported that the financial obligations of debts of the national flag carrier is Rs 742 billion against its assets of Rs 14.7 billion. The most of the loan was taken to cover losses of 2003, which burdened the national airline with annual payment of Rs 122 billion.

READ: PIA cancels several flights amid financial crunch

The administration of the national airline directed the interested firms in financial advisory of Roosevelt Hotel to submit the application by October 09, along with an application fee of $1000.

Sources stated that the applications will be sought from various firms regarding the sale of other remaining assets of PIA.

The aviation experts expressed that the Pakistan’s economic condition and negative credit rating can cause hurdles in the way of PIA to get foreign investment.

“PIA owns valuable properties in Pakistan and abroad and it is crucial to conduct a thorough financial assessment in order to prevent any losses to the country,” aviation experts stated.

Moreover, the aviation experts stated that the unusual interest and hasty decisions from the caretaker government in the privatisaion process of the national flag carrier is a question mark on the transparency of the matter.

PIA woes

It is pertinent to mention here that Pakistan International Airlines (PIA) is grappling with a severe financial crisis, raising concerns about its ability to sustain air operations amidst mounting debts.

It emerged Wednesday that the bank accounts of Pakistan International Airlines (PIA) were unblocked after matters between the national flag carrier and the Federal Board of Revenue (FBR) over non-payment of dues were settled.

The bank accounts were unblocked after the national flag carrier assured the tax collection body of clearing all pending dues and submitted written assurance. According to FBR spokesperson, PIA will pay Rs2.5bn this month as per the agreement.

The previous Pakistani administration of Prime Minister Shehbaz Sharif said it wanted to privatize the airline, while the caretaker government of the country has instructed relevant authorities last week to finalize its restructuring plan.