Pakistan backs HBFC sale, airport outsourcing

Pakistan’s Cabinet Committee on Privatization has approved moving ahead with the privatization of the House Building Finance Company and has recommended including the outsourcing of Islamabad International Airport, an official statement said.

The committee took the decisions at a meeting on Tuesday chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, where it reviewed the privatization process for several state-owned entities.

The statement said the committee endorsed the Privatization Commission’s decision to launch a second round of privatization for HBFC after the first attempt failed to attract an acceptable offer.

Dar stressed that sponsoring ministries and the Privatization Commission must ensure fair market valuation, taking into account both asset values and future business prospects. He said privatization would help attract private-sector investment and allow entities to respond more quickly to market conditions.

The meeting was attended by Finance Minister Muhammad Aurangzeb, Power Minister Awais Leghari, Special Assistant to the Prime Minister Haroon Akhtar, Special Assistant to the Prime Minister Tariq Bajwa, and senior officials from the Cabinet Division, Privatization Commission, Law Division and Ministry of Industries.

In January, the government suspended the first privatization cycle of HBFC after receiving a single bid of PKR 4.2 billion from Pakistan Mortgage Refinance Company, well below the reference price of PKR 13.55 billion.

Officials have said the privatization process is expected to restart and could include a strategic merger with Zarai Taraqiati Bank Limited. Some proposals envision a combined HBFC-ZTBL entity that would integrate rural and urban financing operations into what has been described as a “full-stack” development and commercial bank.

Under the original plan outlined by the Privatization Commission, the government aims to divest 100% management control of HBFC, with a strategy to diversify the institution into small and medium enterprise and consumer financing.

Despite delays, the government has reiterated its commitment to privatizing state-owned enterprises, including HBFC, as part of its broader economic reform agenda, which is backed by international financial institutions.