Key Points
- Sale of 51% stake in House Building Finance Company Limited set to be terminated
- Fresh expressions of interest to be issued for the Roosevelt Hotel in New York
- Islamabad International Airport proposed for privatisation under a concession model
- Transaction committees advance work on power distribution companies
ISLAMABAD: Pakistan’s Privatisation Commission has taken a series of consequential decisions on high-profile state assets, halting the ongoing sale of a majority stake in a housing finance firm, resetting the process for the Roosevelt Hotel in New York, and proposing the inclusion of Islamabad International Airport in the national privatisation programme.
At its 247th meeting, chaired by Advisor to the Prime Minister on Privatisation and Commission Chairman Muhammad Ali, the Board of Commission reviewed progress on multiple transactions and endorsed course corrections aimed at improving transparency, competition, and value for the national exchequer.
On House Building Finance Company Limited (HBFCL), the board recommended terminating the negotiated sale of a 51 per cent stake after Pakistan Mortgage Refinance Company Limited emerged as the sole bidder with an offer of Rs 4.2 billion. The bid was significantly below the Rs 13.55 billion reference price earlier approved by the Cabinet Committee on Privatisation. The board advised restarting the process and appointing a new financial advisor to reassess market interest and transaction structure.
Regarding the Roosevelt Hotel in New York, a long-discussed overseas asset, the board annulled the earlier process for hiring a financial advisor and has directed the issuance of fresh expressions of interest. The decision followed a narrowing of potential advisers from seven to two after legal and technical screening, a development the board said limited competition. The reset is intended to broaden participation and strengthen price discovery.
The commission also recommended that Islamabad International Airport be formally included in the privatisation programme. It proposed a concession-based model to be offered through an open and competitive process, aligning with global practices for airport management and operations.
This proposal follows a ruling by the Cabinet Committee on Inter-Governmental Commercial Transactions on January 1, 2026, which ruled out a government-to-government approach for the airport. The commission has been authorised to negotiate directly with the Asian Development Bank for its appointment as financial adviser for the transaction.
In the power sector, the board approved the formation of a transaction committee for the privatisation of Hyderabad Electric Supply Company and Sukkur Electric Power Company. The committee will evaluate deliverables submitted by Raiffeisen Investment, the appointed financial adviser, as part of the second batch of power distribution companies slated for privatisation.
The Privatisation Commission reiterated that all transactions would be conducted through structured and competitive processes, underscoring its stated objective of maximising returns for the national exchequer and strengthening investor confidence.
