Press Release Title: Senator Dr. Afnan Ullah Khan, Chairman Senate Standing Committee on Privatization presiding over a meeting of the committee at Parliament Lodges Islamabad.

Press Release Date: 14th July, 2026

The Senate Standing Committee on Privatization Reviews Progress on DISCOs Privatization, Airport Outsourcing, issues related to NCEL building and property details of PIACL and PIAHCL. The Senate Standing Committee on Privatization met today under the chairmanship of Senator Dr Afnan Ullah Khan to review the progress of major privatization initiatives, including the privatization of power distribution companies (DISCOs), the outsourcing of international airports, and other strategic transactions. During the meeting, the Committee received a detailed briefing from the Secretary, Privatization Division, on the privatization of three power distribution companies. The Committee was informed that the privatization process commenced in August 2024, and comprehensive review reports for all DISCOs have been prepared by the Financial Advisor. The Committee was informed that the Cabinet Committee on Privatization has approved the sale of 51 to 100 percent equity in the selected DISCOs. To promote competition and prevent market concentration, each investor will be permitted to acquire only one DISCO, while the final percentage of shares to be offered will be determined in consultation with prospective investors. The Secretary informed the Committee that Expressions of Interest (EOIs) for the privatization of FESCO can be submitted until August 7, after which qualified investors will be allowed to undertake due diligence. The Committee was further informed that investment roadshows had been conducted in China, Türkiye, and Saudi Arabia, attracting significant interest from both local and international investors. According to the Privatization Commission, investors have emphasized the need to align Pakistan's regulatory framework with international standards, strengthen the role of NEPRA, enhance market competition, and establish a transparent, predictable, and competitive regulatory environment. The Privatization Commission stated that it is preparing comprehensive power sector reform recommendations in coordination with the Power Division and NEPRA, with the objective of opening the electricity supply market to greater competition. The Committee also reviewed the long-pending matter relating to the Hyatt Regency Hotel building. Officials of the Privatization Division informed members that the property was privatized in 2004 for Rs530 million, while a decision was taken in 2003 to convert the building into a National Commodity Exchange. The Committee was informed that despite full payment by the purchaser, the transfer of lease has remained unresolved for more than two decades due to the absence of a No Objection Certificate (NOC) from Pakistan Railways and subsequent legal proceedings. Representatives of the Pakistan Mercantile Exchange informed the Committee that all financial obligations had been fulfilled and lease payments have been made regularly since 2014. They stated that the application for lease transfer has remained pending for nearly 20 years. Pakistan Railways officials informed the Committee that the original lease agreement was executed in 2004 for a period of ten years, after which the matter became the subject of litigation. They maintained that the original purchaser was required to apply for transfer of the lease and referred to proceedings before the Supreme Court. However, representatives of the Pakistan Mercantile Exchange disputed the interpretation of the court proceedings and maintained that no Supreme Court order directed termination of the lease agreement. Expressing concern over the prolonged delay, Chairman Senator Dr. Afnan Ullah Khan observed that the issue has remained unresolved despite full payment and instructed that practical steps be taken to reach a resolution. He directed the Privatization Commission to formally write to Pakistan Railways regarding the issuance of the required NOC and announced that the matter would also be taken up in a joint meeting with the Senate Standing Committee on Railways. The Committee also reviewed the government's plans for the country's major international airports. The Secretary, Privatization Division, clarified that Karachi, Lahore, and Islamabad International Airports will not be sold, but will instead be outsourced under a concession model to improve operational efficiency and passenger services. The Committee was informed that previous privatization efforts undertaken by the Ministry of Aviation did not succeed, while the current transaction is being structured with the support of international financial institutions. The Secretary, Privatization Commission, informed members that the Asian Development Bank (ADB) has been appointed as the Financial Advisor for the outsourcing of Islamabad International Airport, with the formal agreement scheduled to be signed shortly. The outsourcing process is expected to be completed within nine months, while the due diligence phase is expected to conclude within three months. The Committee was further informed that a single Financial Advisor will be appointed for the outsourcing of Karachi and Lahore International Airports, with preparatory work already underway. The briefing also covered progress on the restructuring of Pakistan International Airlines (PIA). Officials informed the Committee that 33 PIA properties have been transferred to the holding company, while 11 properties—including four in Pakistan and seven abroad—remain with PIA. The combined value of these assets is estimated at Rs14.2 billion. Regarding the Roosevelt Hotel, the Committee was informed that discussions with financial advisors are ongoing and the transaction structure is currently being finalized. The Privatization Commission aims to complete the privatization process by the end of the current year. During the meeting, Senator Umar Farooq questioned whether airports could continue to be managed by the government. In response, the Secretary, Privatization Commission, stated that the outsourcing model is intended to deliver improved services, enhanced operational efficiency, and greater benefits for the travelling public. Chairman Senator Dr Afnan Ullah Khan congratulated the Privatization Commission on the successful privatization of Pakistan International Airlines (PIA), stating that the transaction had protected the national exchequer from annual losses estimated at Rs100 billion. The Committee reaffirmed its commitment to ensuring transparency, accountability, and efficiency in Pakistan's privatization programme while safeguarding the public interest and promoting sustainable economic growth.   The meeting was attended by Senator Umer Farooq, Senator Khalil Tahir Sandhu, Senator Palwasha Mohammad Zai Khan and senior officials from relevant departments