ISLAMABAD: The government of Pakistan has decided to sell the House Building Finance Company (HBFC) through a negotiated deal.
However, the decision on appointing a financial adviser for the privatization of the Roosevelt Hotel in New York has been deferred.
These decisions were made during a meeting of the Cabinet Committee on Privatization (CCOP) chaired by Finance Minister Ishaq Dar.
The CCOP discussed the privatization process of Roosevelt Hotel, and after consultation with the aviation ministry, it was decided to defer the decision on appointing a financial adviser.
The aviation ministry’s response regarding the hiring of a financial adviser was not clear, and the committee members were concerned about the potential additional costs.
In another development, the CCOP approved the handing over of Services International Hotel (SIH) to the buyer after two years of privatization.
The Privatization Commission submitted a summary of the sale of SIH, and the committee allowed the commission to proceed with the transaction and complete the transfer and mutation process in the name of the purchaser.
Regarding the sale of HBFC, the CCOP decided to proceed with a single source and a negotiated transaction with the Pakistan Mortgage Refinance Company Limited (PMRCL) as the pre-qualified bidder.
It is worth noting that the HBFC has been on the active privatization list since 2018, and after considering four interested parties, PMRCL emerged as the sole bidder.
The CCOP also discussed the budget estimates for the Privatization Commission for the fiscal year 2023-24, amounting to Rs. 1.25 billion.
Furthermore, the CCOP deferred decisions on the privatization of Pakistan Engineering Company (PECO) and Sindh Engineering Limited (SEL).
Besides, the Secretaries of the Privatization Commission, Law, and Industries have been directed to hold consultations and come up with a future course of action for both entities.
Source: Tribune
