ISLAMABAD: The government has announced its decision to sell the House Building Finance Company (HBFC) through a negotiated deal.
However, the authorities deferred the decision regarding the appointment of a financial adviser for the privatization of the Roosevelt Hotel in New York.
The Cabinet Committee on Privatisation (CCOP), chaired by Finance Minister Ishaq Dar, has made several decisions regarding the privatization process. The CCOP approved the sale of the HBFC through a negotiated transaction with Pakistan Mortgage Refinance Company Limited (PMRCL), the single pre-qualified bidder.
The committee also approved the transfer of Services International Hotel (SIH) to the buyer after two years of privatization. The Privatisation Commission provided updates on the privatization process of the Roosevelt Hotel. The CCOP deferred the decision on appointing a financial adviser for the hotel’s privatization, pending consultation with the aviation ministry.
The privatization process in Pakistan has progressed slowly, and there have been past instances of disputed transactions. The CCOP allowed the Privatisation Commission to proceed with the SIH transaction, ensuring the completion of the transfer and mutation process in the name of the purchaser. The government sold the hotel to Faisal Town in August 2021. Although the bidder paid the full amount, they have not yet taken possession of the property.
Regarding the privatisation of Pakistan Engineering Company (PECO) and Sindh Engineering Limited (SEL), the CCOP deferred the decision. The Privatisation Commission presented summaries on both entities and briefed the meeting on their status. Mutual consultations between the secretaries of the Privatisation Commission, Law, and Industries have been directed to determine the future course of action for both cases.
The Privatisation Commission also submitted a summary related to its budget estimates for the fiscal year 2023-24. The CCOP approved an amount of Rs1.25 billion budget. The commission presented a budget to CCOP for the first time, in compliance with Privatisation Ordinance requirements.
