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Govt to offer 51% stakes in PIA, Roosevelt to Qatar

khail007

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A very 'Juicy Bone' is on the offer for reward to Qatar - Is it really Qatar OR could be Mr. Saif-Ur-Rehman in Qatar?

PM Shehbaz shelves plan to sell two LNG-fired power plants
Are shelved plans token for the future 'commissions/kickbacks'? If they are able to keep IK out of politics.

Previously Qatar played a very 'crucial' role in providing the 'Qatari-Khat' to present in a major court of law in Pakistan but stayed short to testify in the court.

Even there are rumors that Qatar is in contact for guarantees of the 'safe and free' return of 'Head Absconder' from the UK to Pakistan.

Please discuss according to your POVs - the 'musical chair' game is on:

Govt to offer 51% stakes in PIA, Roosevelt to Qatar​

PM Shehbaz shelves plan to sell two LNG-fired power plants



Shahbaz RanaAugust 16, 2022

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ISLAMABAD:
The government on Monday shelved a plan to sell two LNG-fired power plants to Qatar and instead decided to offer 51% stakes in the Roosevelt Hotel, New York, and the Pakistan International Airlines (PIA).
Prime Minister Shehbaz Sharif took these decisions during a meeting convened to make preparations for his visit next week to Qatar, which is tentatively planned for August 22 to 23, highly placed sources told The Express Tribune.
Finance Minister Miftah Ismail and former prime minister Shahid Khaqan Abbasi also attended the meeting.
The premier has also constituted a committee to finalise these proposals by end of this week and complete all the paperwork before his departure next week, they added.
The sources said that the meeting discussed the possibility of selling the two LNG power plants to Qatar. But some of the participants were of the view that the country may not fetch the best price net of the Rs104 billion debt that these power plants owe and needed to be retired or converted into long-term financing.
After excluding the liabilities, the government might get $500 million to $600 million at best, which was politically difficult to sell to the people as the best price, they added.
The National Power Parks Management Company Limited (NPPMCL) owns 1,230 megawatts (MW) Haveli Bahadur Shah and 1,223MW Balloki power plants. These power plants were set up with government funding instead of the 70:30 debt-to-equity ratio. The Ministry of Finance had bought the equity of these power plants a few years ago through the Pakistan Development Fund proceeds.
The government’s debt of Rs103.7 billion has to be replaced through bank borrowings, which will substantially reduce the final price, according to the sources. The 70% cost of the projects need to be converted into long-term financing for the privatisation of the power plants in line with the tariff-based capital structure.
A senior government official said that the LNG plants’ price discovery was not immediately possible; therefore, these plants might not be offered to the Qatari government for investment purposes.
Finance Minister Ismail had accounted for the sale proceeds of the LNG power plants in his $8.5 billion foreign inflow estimates, which he wanted to raise in this fiscal year to meet the $35 billion gross external financing requirements.
The sources said that it was decided that Pakistan should offer 10% stakes to Qatar in the government-owned listed companies, in line with the similar offer that it has made to the United Arab Emirates.
The UAE is keen to get up to 20% stakes in the Pakistani oil and gas exploration companies and has already handed over a list. Last week, the UAE government showed its intention to invest $1 billion in these companies. The UAE had in May refused to give cash deposits due to Islamabad’s inability to return previous loans and instead asked to open its companies for investment.
It was also decided on Monday that Pakistan should offer 51% stakes in The Roosevelt Hotel, New York, and the PIA along with the management control to Qatar. But the PIA law bars selling more than 49% stakes and giving management control to any other party.
It was decided that the legal process to amend the PIA law should immediately be initiated to do away with the restricting clause.
The Roosevelt Hotel is owned by the PIA through a PIA-Investment Limited. The PIA-IL holds its stakes through a subsidiary which is registered in the British Virgin Islands. The hotel, located at a highly priced location, was closed in December 2020.
The sources said that it was also decided that the management of the Islamabad International Airport should also be offered to Qatar along with handling of air and cargo business. A meeting participant suggested that Pakistan should also offer more flights to Qatar under open skies policy to make the bid attractive, according to the sources.
In order to fast track the sale of these assets, the federal cabinet has already approved a bill –the Inter-Governmental Commercial Transactions Bill 2022 – to bypass all the procedures for the process and also abolished regulatory checks including the applicability of six relevant laws.
Through the proposed piece of legislation, the Centre also wants to empower itself to issue binding instructions to the provincial governments for land acquisition. The government has also proposed to bar the courts of the country not to entertain any petition against the sale of assets and shares of government companies to foreign countries.
The sources said that the government also discussed the proposal to request the Qatari government to set up a $1 billion food and livestock security fund for investment in Pakistan aimed at producing goods here and then export them to Qatar. Qatar was keen to buy land in Pakistan for agriculture purposes but the provincial laws are a hurdle in having direct ownership.
Some of the potential areas for investment are production of vegetables, fruits and setting up meat processing plants, they added.

 
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Jango

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It was also decided on Monday that Pakistan should offer 51% stakes in The Roosevelt Hotel, New York, and the PIA along with the management control to Qatar. But the PIA law bars selling more than 49% stakes and giving management control to any other party.
It was decided that the legal process to amend the PIA law should immediately be initiated to do away with the restricting clause.

The sources said that it was also decided that the management of the Islamabad International Airport should also be offered to Qatar along with handling of air and cargo business. A meeting participant suggested that Pakistan should also offer more flights to Qatar under open skies policy to make the bid attractive, according to the sources.

What the absolute fck?

So if I read the article correctly, PIA management will now be outsourced to Qatar? The sole argument against privatization of PIA was that we need a national airline that is under the state of Pakistan.

So now agr Qatar ko hi bechna hai, to why not privatize it through an open bidding process?

And Islamabad airport management goes to Qatar as well? What's the difference then between Islamabad and Kabul airport? Dono ki management is outsourced to the gulf. 20 crore ka mulk hai and we can't run our own airport? Furthermore, I really don't think CAA will be taking this move lightly, and will be in opposition to this. But un ko chup karana mushkil nhn.

And I thought PTI mulk bech rahi thi...

@Mav3rick , any comments?
 

khail007

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What the absolute fck?

So if I read the article correctly, PIA management will now be outsourced to Qatar? The sole argument against privatization of PIA was that we need a national airline that is under the state of Pakistan.

So now agr Qatar ko hi bechna hai, to why not privatize it through an open bidding process?

And Islamabad airport management goes to Qatar as well? What's the difference then between Islamabad and Kabul airport? Dono ki management is outsourced to the gulf. 20 crore ka mulk hai and we can't run our own airport? Furthermore, I really don't think CAA will be taking this move lightly, and will be in opposition to this. But un ko chup karana mushkil nhn.

And I thought PTI mulk bech rahi thi...

@Mav3rick , any comments?

First, why Qatar being a state running her own international world-class airline will buy PIA?

As pointed out in your post, if Pakistan has to privatize it, the process should be transparent with bidding at the international level instead of offers to a country of interest.

Here it seems more to dispose of the national assets to own frontmen in Qatar - this is known as manipulation of national assets for personal gains and interests.

Just a food for thought:
1660672996783.png
 

313ghazi

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What the absolute fck?

So if I read the article correctly, PIA management will now be outsourced to Qatar? The sole argument against privatization of PIA was that we need a national airline that is under the state of Pakistan.

So now agr Qatar ko hi bechna hai, to why not privatize it through an open bidding process?

And Islamabad airport management goes to Qatar as well? What's the difference then between Islamabad and Kabul airport? Dono ki management is outsourced to the gulf. 20 crore ka mulk hai and we can't run our own airport? Furthermore, I really don't think CAA will be taking this move lightly, and will be in opposition to this. But un ko chup karana mushkil nhn.

And I thought PTI mulk bech rahi thi...

@Mav3rick , any comments?
Tbh I found my experience at Islamabad Airport perfectly fine.

It was much nicer than Manchester
 

Jango

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First, why Qatar being a state running her own international world-class airline will buy PIA?

As pointed out in your post, if Pakistan has to privatize it, the process should be transparent with bidding at the international level instead of offers to a country of interest.

Here it seems more to dispose of the national assets to own frontmen in Qatar - this is known as manipulation of national assets for personal gains and interests.

Just a food for thought:
View attachment 871136

This is a clear conflict of interest.

The same family which showed up a letter of a Qatari royal in court to save their behinds, is now giving a 51% stake to the same Qatari royals? Quid pro quo? Time to return the favor?
 

Mav3rick

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What the absolute fck?

So if I read the article correctly, PIA management will now be outsourced to Qatar? The sole argument against privatization of PIA was that we need a national airline that is under the state of Pakistan.

So now agr Qatar ko hi bechna hai, to why not privatize it through an open bidding process?

And Islamabad airport management goes to Qatar as well? What's the difference then between Islamabad and Kabul airport? Dono ki management is outsourced to the gulf. 20 crore ka mulk hai and we can't run our own airport? Furthermore, I really don't think CAA will be taking this move lightly, and will be in opposition to this. But un ko chup karana mushkil nhn.

And I thought PTI mulk bech rahi thi...

@Mav3rick , any comments?
There is no argument on PTI mulk bech rahi thi, I see no evidence of it. PTI and Imran Khan especially, in my opinion, are just most incompetent (they are corrupt too but so is absolutely everyone in Pakistan).

As for the entire sage of PIA and Roosevelt, I have no knowledge of it so cannot comment on the pros and cons. However, I am a big supporter of selling all our SOE's by privatizing them to Pakistanis. Pakistanis can not only buy them all but run them into profit making entities within a few years; I imagine Pakistanis can also buy the SOE's in foreign payment, if the Government so desires. I further believe that the SOE's, Utilities and autonomous bodies should themselves fix the circular debt issue by ensuring that there are neither any line losses, nor any theft of utilities (non-payment of dues, kunda etc.).

The Government, IMO, should focus on Governing, defending the constitution by positive amendments, law giving and law implementation. The fool I am, I also have the opinion that most Government institutions such as police, FIA, NAB etc., should generate their own budget like the SBP does. rather than to be a burden on the Government.
 

Jango

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Following up from my initial comment and looking from a purely aviation perspective, would be interesting the direction Qatar takes with this.

With Emirates growing by leaps and bounds, and Etihad not doing so well...Qatar has been looking in the past year to pick up the demand left over by Etihad. Their attempts thus far have not quite been frtuitful in making Doha a preferred transit hub.

Will they try and counter the Emirates stronghold on Pakistan slots through PIA and get a larger passenger share? Because they tried to, but couldn't do it through other means before. They tried lobbying against Emirates, but failed. Air Arabia also tried to play clever with Fly Jinnah and get some sort of traffic but they ran into legal problems. Or will they use influence to get more slots for Pakistan and capture some of the traffic?

There is no argument on PTI mulk bech rahi thi, I see no evidence of it. PTI and Imran Khan especially, in my opinion, are just most incompetent (they are corrupt too but so is absolutely everyone in Pakistan).

This was often repeated by the N supporters, so I was just wondering if you are from the same school of thought.

As for the entire sage of PIA and Roosevelt, I have no knowledge of it so cannot comment on the pros and cons. However, I am a big supporter of selling all our SOE's by privatizing them to Pakistanis. Pakistanis can not only buy them all but run them into profit making entities within a few years; I imagine Pakistanis can also buy the SOE's in foreign payment, if the Government so desires. I further believe that the SOE's, Utilities and autonomous bodies should themselves fix the circular debt issue by ensuring that there are neither any line losses, nor any theft of utilities (non-payment of dues, kunda etc.).

The Government, IMO, should focus on Governing, defending the constitution by positive amendments, law giving and law implementation. The fool I am, I also have the opinion that most Government institutions such as police, FIA, NAB etc., should generate their own budget like the SBP does. rather than to be a burden on the Government.

I agree with your points above. And this is what I have been advocating for long as well. Government has no business runnning a business, or fixing crop prices on one end but leave to the market at the other.

BUT, this should be done through a competitive process rather than changing a law and handing it over preferentialy. Handing over SOE's to private entities is the way to go...but in the absence of strong laws and private interests, a fair process becomes a wet dream.

Look at Air India, the govt privatized it and sold it to Tata, and look at it now...it's completely transformed. The same should be done to PIA, but this is not the manner it should be done in.

The Government, IMO, should focus on Governing, defending the constitution by positive amendments, law giving and law implementation

Yahan har kisi ko apna kaam karnay kay bajaye doosray kay kaam main zyada interest hota hai. You have legislators more interested in setting up a water pump or a sewerage drain and putting up a board rather than legislating. The absence of a local government system shows. But well, this is for another thread.
 
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FuturePAF

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First, why Qatar being a state running her own international world-class airline will buy PIA?

As pointed out in your post, if Pakistan has to privatize it, the process should be transparent with bidding at the international level instead of offers to a country of interest.

Here it seems more to dispose of the national assets to own frontmen in Qatar - this is known as manipulation of national assets for personal gains and interests.

Just a food for thought:
View attachment 871136
PIA will probably end up being to Qatar Airways what FlyDubai is to Emirates. A budget airlines. PIA will probably just operate A320s and a few 777 for the long haul flights to the West.
 

Wood

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Interesting direction for PIA. Just like most Indians hope that TATA will restore Air India's service quality, perhaps Qatar airways can do the same for PIA. Incidentally, Sri Lanka is also looking for a private partner to take over their national carrier. But so far, there are no takers for it. :undecided:
 

Jango

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PIA will probably end up being to Qatar Airways what FlyDubai is to Emirates. A budget airlines. PIA will probably just operate A320s and a few 777 for the long haul flights to the West.

That is what I am curious about.

PIA has plans (and currently an open bid if I am not wrong) for A330's. The UK routes are currently closed (they are the main earner for PIA), and PIA/CAA is actively working to get that up.

If this deal does go through, I can definitely see Qatar changing these plans and making PIA a feeder airline for it's network to Doha and capturing the Pakistani traffic to the UK and Canada etc.

Pehle Emirates nay saray slots lay kar tabah kar dia, aur ab yeh. Although I am not a proponent of protectionism (you should have a better product if you want to get traffic), but it should be within reason and not to your own detriment.
 

Wood

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If this deal does go through, I can definitely see Qatar changing these plans and making PIA a feeder airline for it's network to Doha and capturing the Pakistani traffic to the UK and Canada etc.
The hub and spoke approach is on the way out even for long distance flights. Point to Point is more preferable for both the airlines and the customers with the introduction of narrow body long distance aircrafts (like A321XLR). So I doubt what you say is the plan. Because Pakistani private carriers will simply outcompete PIA by operating direct routes.

Most likely Qatar is interested in PIA for its access to routes in different international airports. With 220 million population and a huge diaspora, Pakistani routes will become very profitable when operating overheads are managed effectively. :cheers:
 

HttpError

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Good, When Qataris will give big Danda to these beghairat PIA employees then only they will start working. Our qoum only understands one language, the language of Danda. Sad state of affairs.
 

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