Pakistan to start new process to sell off public housing finance firm

Pakistan will start a fresh process to sell off the public housing finance company after scrapping the ongoing negotiations.

The Privatization Commission Board has recommended the termination of the ongoing negotiations to sell off 51% shareholding in House Building Finance Company Limited (HBFCL).

The recommendation was made during a meeting of the board, chaired by Adviser to the Prime Minister on Privatization Muhammad Ali, this week.

The board also reviewed matters related to the privatization of the Roosevelt Hotel in New York, the New Islamabad International Airport, and the power distribution companies.

The HBFCL privatization has been scrapped due to a lack of buyers, as the Pakistan Mortgage Refinance Company was the sole bidder.

The company has submitted a bid of PKR 4.2 billion for 51% shareholding of HBFCL against a reference price of PKR 13.55 billion approved by the Cabinet Committee on Privatization (CCoP), said an official statement issued after the board meeting.

The board further recommended the privatization to restart with the appointment of a new financial adviser.

The board also canceled the process of hiring a financial adviser for the privatization of the Roosevelt Hotel.

It directed that fresh expressions of interest be invited for the appointment of a financial adviser to ensure a more competitive and robust process.

Under the prescribed criteria, the number of interested parties had reduced from seven to two after screening for legal and technical compliance, the statement said.

In July 2025, Jones Lang LaSalle (JLL), a leading global real estate services firm -- which was advising the government on the transaction -- withdrew its services citing a “potential conflict of interest”.

Other decisions

The board also recommended to the CCoP that the New Islamabad International Airport be included in the privatization program.

Earlier, the Cabinet Committee on Intergovernmental Commercial Transactions rejected the airport's privatization under the government-to-government (G2G) mode.

The PC Board has now recommended a competitive process to privatize the airport.

The board authorized the Privatization Commission to enter into direct negotiations with the Asian Development Bank for a financial advisory agreement.

The PC Board also approved the formation of a transaction committee for the privatization of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), Pakistan's two loss-making electricity suppliers.

The committee will review deliverables submitted by the transaction’s financial adviser.