Privatization Commission Decisions Signal Shift in Pakistan Asset Strategy
The government has announced fresh Privatization Commission decisions on major national assets. These moves aim to improve transparency and attract stronger investor interest. As a result, several high profile transactions now enter a new phase.
During its 247th meeting, the Privatization Commission Board reviewed multiple projects. Muhammad Ali chaired the meeting as Adviser to the Prime Minister on Privatization. The Board focused on financial value, competition, and long term public benefit.
HBFCL Sale Process to Restart
The Board decided to terminate the ongoing sale of House Building Finance Company Limited. Pakistan Mortgage Refinance Company Limited submitted the only bid. However, the offer of Rs4.2 billion fell far below expectations.
Previously, the cabinet approved a reference price of Rs13.55 billion. Therefore, the Board rejected the bid to protect national interests. It also advised restarting the privatization with a new financial adviser.
The Roosevelt Hotel in New York also faced a major review. Initially, seven parties showed interest in advising the transaction. However, legal and technical screening reduced the number to two.
To ensure fair competition, the Board cancelled the process. In addition, it ordered fresh expressions of interest. This step aims to attract stronger and more diverse participation.
Islamabad Airport Added to Privatization Plan
The Board approved the inclusion of Islamabad International Airport in the privatization programme. It proposed a concession based model instead of an outright sale. Therefore, the airport will operate under a competitive and transparent framework.
Earlier, the Cabinet Committee rejected a government to government approach. As a result, the Commission received approval to engage directly with the Asian Development Bank. The ADB may serve as financial adviser for the transaction.
Progress on Power Distribution Companies
The meeting also covered the second batch of DISCOs. The Board approved a transaction committee for HESCO and SEPCO. This committee will review deliverables from Raiffeisen Investment.
In addition, officials stressed structured processes for these sales. The goal remains improved efficiency and reduced financial burden.
The Privatization Commission reaffirmed its commitment to openness. Every deal will follow competitive procedures. Ultimately, these Privatization Commission decisions aim to maximize returns for the national exchequer while protecting public assets.
