ISLAMABAD: The Senate Standing Committee on Privatization convened under the leadership of Senator Dr. Afnan Ullah Khan to assess the advancement of critical privatization initiatives, including the privatization of power distribution companies (DISCOs) and the outsourcing of international airports.

According to Senate of Pakistan, the Committee received a comprehensive briefing from the Secretary of the Privatization Division regarding the privatization of three power distribution companies. Initiated in August 2024, the process has seen the Cabinet Committee on Privatization approve the sale of 51 to 100 percent equity in selected DISCOs. The investors are limited to acquiring only one DISCO to encourage competition.

The Secretary revealed that Expressions of Interest for the privatization of FESCO are open until August 7. Investment roadshows have already been conducted in China, Türkiye, and Saudi Arabia, garnering interest from local and international investors. The Privatization Commission highlighted the necessity for Pakistan to align its regulatory framework with international standards to attract further investments.

The Committee also examined the protracted issue of the Hyatt Regency Hotel building, privatized in 2004. Despite full payment by the purchaser, lease transfer complications persist due to a missing No Objection Certificate from Pakistan Railways. Chairman Khan urged practical steps to resolve the matter and suggested a joint meeting with the Senate Standing Committee on Railways.

In terms of airport outsourcing, the Committee clarified that major airports in Karachi, Lahore, and Islamabad will not be sold but outsourced to improve efficiency and services. The Asian Development Bank has been appointed as the Financial Advisor for the Islamabad International Airport, with the process expected to conclude within nine months.

The Committee also reviewed the restructuring of Pakistan International Airlines (PIA), noting that 33 properties have been transferred to a holding company. Discussions regarding the Roosevelt Hotel’s transaction structure are ongoing, with completion aimed for the end of the year.

The meeting underscored the commitment to transparency and accountability in the privatization program, with an emphasis on safeguarding public interest and promoting economic growth.