The government of Islamabad, Pakistan, is expecting to get a minimum of $700 million in net proceeds from the sale of Roosevelt Hotel New York and Hotel Scribe Paris, owned by Pakistan International Airlines (PIA), and deals could be struck as early as January next year.
The money raised by selling both the assets will be used to clear PIA’s debt, which currently stands at approximately $2 billion.
Mohammad Zubair, chairman of the Privatisation Commission, said the deadline, set for December 2014, for selling a minimum of 26 percent of PIA's shares to strategic investors could not be achieved, and the date had been extended by another six months.
This is the second extension as under the original plan PIA was to be privatised by June this year. However, the plan to raise at least $430 million by selling 20 percent of its shares of United Bank Limited to institutional investors before the end of June remains on track.