The government has decided to restart the privatisation process for the House Building Finance Company Limited (HBFCL), officials confirmed on Saturday. The board reviewed the ongoing HBFCL deal and recommended terminating the current negotiated process.
According to the official statement, Pakistan Mortgage Refinance Company was the sole bidder for a 51 percent shareholding in HBFCL. The submitted bid of Rs4.2 billion was significantly lower than the approved reference price of Rs13.55 billion. In view of this large gap, the board advised that the HBFCL deal be reopened with a fresh privatisation process to attract more competitive offers.
On the Roosevelt Hotel, the board also decided to cancel the ongoing process for hiring a financial adviser. Only two parties remained after screening from seven initially interested, leading the authorities to call for new expressions of interest for the advisory role. The government is exploring a joint venture option where Pakistan provides the land and the partner contributes equity, or retaining the hotel if economically viable.
Additionally, the board recommended including the New Islamabad International Airport in the privatisation programme. The Privatisation Commission has been authorised to engage with the Asian Development Bank for a financial advisory agreement.
The meeting also approved forming a transaction committee for the privatisation of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO). These companies are part of the second batch of power distribution firms scheduled for privatisation.
Adviser to the Prime Minister on Privatisation and Chairman Privatisation Commission, Muhammad Ali, stated that the government is reviewing all major privatisation transactions to ensure realistic valuations, transparency, and stronger investor participation.
The review of the HBFCL deal reflects Islamabad’s broader approach to reassessing state-owned assets and ensuring that future privatisation processes attract credible bids and maximize economic returns for the country.
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