ISLAMABAD: The government has halted the ongoing privatisation of House Building Finance Company Limited (HBFC) and reopened the process for the Roosevelt Hotel in New York, following a meeting of the Privatisation Commission Board chaired by the Adviser on Privatisation.
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Officials said the board reviewed key state-owned assets and decided to terminate the HBFC deal after Pakistan Mortgage Refinance Company remained the sole bidder. The submitted bid of Rs4.2 billion fell far short of the approved reference price of Rs13.55 billion, prompting the board to restart the process to attract more realistic and competitive offers.
Regarding the Roosevelt Hotel, the board cancelled the ongoing process for hiring a financial adviser. Only two parties remained after screening, limiting competition. Authorities have now decided to invite fresh expressions of interest to appoint a new adviser, aiming for broader investor participation.
The board also recommended including the New Islamabad International Airport in the privatisation programme, authorising the Privatisation Commission to engage the Asian Development Bank for financial advisory services. Additionally, a transaction committee was approved for the privatisation of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) as part of the second batch of power distribution companies.
Separately, the government is considering options for the PIA-owned Roosevelt Hotel, which has been closed since 2020. Options include a joint venture, where Pakistan provides the land and a partner contributes equity, or potentially demolishing the iconic building to construct a skyscraper, according to the Privatisation Adviser Muhammad Ali. A final decision is expected in the coming months after market assessment and partner selection.
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Officials said these moves reflect the government’s commitment to transparent privatisation, fair valuations, and stronger investor participation in state-owned assets.