ISLAMABAD: A Senate committee on Tuesday directed the Privatisation Commission to resolve the long-pending transfer of Karachi’s Hyatt Regency building after expressing concern that authorities had failed to transfer the property to its purchaser more than two decades after its privatisation.

The Senate Standing Committee on Privatisation, chaired by Senator Afnanullah, reviewed the case of the abandoned hotel building. Officials from the Privatisation Division told the committee that the government privatised the property in 2004 for Rs530 million after deciding in 2003 to convert it into a National Commodity Exchange.

Officials said the purchaser completed the full payment, but authorities have yet to transfer the lease because Pakistan Railways has not issued the required no-objection certificate (NOC). They added that legal proceedings have also delayed the process.

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Representatives of the Pakistan Mercantile Exchange told the committee that they had fulfilled all financial obligations and regularly paid lease charges since 2014. They said their application for the lease transfer has remained pending for nearly 20 years.

Pakistan Railways officials said the original lease agreement, signed in 2004 for 10 years, later became the subject of litigation. They argued that the original purchaser had to apply for the lease transfer and referred to ongoing proceedings before the Supreme Court.

However, representatives of the Pakistan Mercantile Exchange disputed that position, saying no Supreme Court order had directed the termination of the lease agreement.

Expressing dissatisfaction over the prolonged delay, Senator Afnanullah instructed the Privatisation Commission to formally approach Pakistan Railways for the required NOC. He also said the issue would come up at a joint meeting of the Senate Standing Committees on Privatisation and Railways.

The committee also reviewed the government’s plans for major international airports. The Privatisation Secretary told lawmakers that the government would not sell Karachi, Lahore and Islamabad airports but would outsource their operations under a concession model to improve efficiency and passenger services.

He said earlier government-to-government proposals with friendly countries had failed. The government has now restructured the plan with support from international financial institutions.

According to the secretary, the Asian Development Bank (ADB) will serve as the financial adviser for the outsourcing of Islamabad International Airport, with the formal agreement expected soon. Officials expect to complete the due diligence process within three months and finalise the outsourcing within nine months.

The government also plans to appoint a single financial adviser for the outsourcing of Karachi and Lahore airports, while preparatory work is already underway.

During the briefing, officials also updated the committee on the restructuring of Pakistan International Airlines (PIA). They said authorities had transferred 33 PIA properties to the holding company, while 11 properties — including four in Pakistan and seven overseas — would remain with the airline. The combined value of these assets stands at Rs14.2 billion.

Officials also briefed lawmakers on the Roosevelt Hotel project, saying they were finalising the transaction structure with financial advisers and aimed to complete the process before the end of the year.

Responding to a question about retaining government control of airports, the Privatisation Secretary said the concession model would improve operational efficiency, strengthen passenger services and deliver greater public benefits.

The committee also received an update on the privatisation of three electricity distribution companies (Discos). Officials said the process began in August 2024 and financial advisers had completed review reports for all selected companies.

They added that the Cabinet Committee on Privatisation had approved the sale of 51% to 100% equity in the selected Discos. The government will decide the final stake after consulting prospective investors, while limiting each investor to acquiring only one distribution company to encourage competition.