Senate panel irked by two-decade delay in transfer of Karachi's Hyatt Regency

• Committee asks Privatisation Commission to approach railways to issue NOC to purchaser; officials say matter is ‘subject to litigation’
• Karachi, Lahore, Islamabad airports to be outsourced to improve efficiency, body told
• Officials say 33 PIA properties transferred to holding company, 11 to remain with airline

ISLAMABAD: A parliamentary panel on Tuesday expressed serious displeasure that Karachi’s landmark Hyatt Regency Hotel building could not be transferred to the purchaser in more than two decades and ordered settlement of the issue at the earliest.

A meeting of the Senate Standing Committee on Privatisation, presided over by Senator Afnanullah, was reviewing the matter relating to the abandoned building of the hotel. The Privatisation Division officials reported that the property was privatised 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,” said the Senate secretariat after the meeting. The committee also discussed privatisation of airports, power companies, and the Pakistan International Airlines (PIA).

Representatives of the Pakistan Mercantile Exchange reported that all financial obligations had been fulfilled and lease payments had regularly been made since 2014. They stated that the application for lease transfer has been pending for nearly 20 years.

Pakistan Railways officials informed the panel 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 ongoing proceedings before the Supreme Court. However, representatives of the Pakistan Mercantile Exchange disputed the interpretation and maintained that no Supreme Court order directed the termination of the lease agreement.

Expressing concern over the prolonged delay, Chairman Afnanullah instructed that practical steps be taken to reach a resolution. He directed the Privatisation 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.

International airports

During discussions on the government’s plans for the country’s major international airports, the privatisation secretary reported that Karachi, Lahore, and Islamabad airports will not be sold, but will instead be outsourced under a concession model to improve operational efficiency and passenger services. He said the previous efforts by the aviation ministry for G2G deals with friendly nations did not succeed.

Therefore, he said, the transaction was being restructured with the support of international financial institutions for which the Asian Development Bank (ADB) had been selected as the financial adviser for outsourcing of the 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,” it said.

Separately, a single financial advisor will be appointed for the outsourcing of Karachi and Lahore airports, with preparatory work already underway, the secretary said.

The briefing also covered progress on restructuring of the PIA. Officials told the committee that 33 PIA properties had been transferred to the holding company, while 11 properties — including four in Pakistan and seven abroad — remained 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 advisers were ongoing and the transaction structure was currently being finalised with an aim to complete the process by the end of the current year.

Responding to a question about whether airports could continue to be managed by the government, the secretary said the outsourcing model was intended to deliver improved services, enhanced operational efficiency, and greater benefits for the public.

Updating the panel on the privatisation of three power distribution companies, the secretary said the privatisation process commenced in August 2024, and comprehensive review reports for all Discos had been prepared by the financial adviser.

The Cabinet Committee on Privatisation had approved the sale of 51 to 100pc equity in the selected Discos and a final decision about 51 or 100pc sale would be taken in consultation with prospective investors. “To promote competition and prevent market concentration, each investor will be permitted to acquire only one Disco,” he said.

Published in Dawn, July 15th, 2026 ...