Key Takeaways
- Parliamentary committee expresses displeasure over two-decade delay in transferring Karachi's Hyatt Regency Hotel.
- Privatisation Commission ordered to seek Pakistan Railways' NOC for the hotel's purchaser.
- Karachi, Lahore and Islamabad airports will be outsourced under a concession model.
A parliamentary panel has expressed serious displeasure over the two-decade delay in transferring Karachi’s landmark Hyatt Regency Hotel building to its purchaser. The Senate Standing Committee on Privatisation, chaired by Senator Afnanullah, convened a meeting to address the issue and ordered practical steps be taken to resolve it at the earliest.
According to the Senate secretariat, the property was privatised in 2004 for Rs530 million, with a decision made in 2003 to convert the building into a National Commodity Exchange. Despite full payment by the purchaser, the transfer of lease has remained unresolved due to the absence of a no-objection certificate (NOC) from Pakistan Railways and subsequent legal proceedings.
The committee was informed that the original lease agreement was executed in 2004 for a period of ten years, after which the matter became the subject of litigation. However, representatives of the Pakistan Mercantile Exchange disputed this interpretation, maintaining that no Supreme Court order directed the termination of the lease agreement. The Privatisation Commission has been instructed to formally write to Pakistan Railways regarding the issuance of the required NOC.
In addition to the Hyatt Regency issue, the committee also discussed privatisation plans for other assets. 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 stated that previous efforts by the aviation ministry for government-to-government (G2G) deals with friendly nations did not succeed.
The transaction is being restructured with support from international financial institutions, with the Asian Development Bank selected as the financial adviser for outsourcing Islamabad International Airport. The formal agreement is scheduled to be signed shortly, and the outsourcing process is expected to be completed within nine months. The due diligence phase is currently underway.
Senator Afnanullah expressed concern over the prolonged delay in resolving these issues. He directed that practical steps be taken to reach a resolution and instructed the Privatisation Commission to formally write to Pakistan Railways regarding the issuance of the required NOC. The matter will also be discussed in a joint meeting with the Senate Standing Committee on Railways.
The committee’s discussions highlighted the need for timely action to address these long-standing issues, ensuring that public assets are managed efficiently and effectively. While the focus is currently on resolving the Hyatt Regency issue, other privatisation plans are moving forward as well.
