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ISLAMABAD: The Cabinet Committee on Privatization (CCoP) on Monday approved sell-out of House Building Finance Corporation (HBFC) to a single source/negotiated transaction, while deferring decision on appointing a financial adviser for the privatisation of Roosevelt Hotel, New York.
The Cabinet Committee on Privatisation (CCOP), chaired by Finance Minister Ishaq Dar, has made several decisions regarding the privatization process. The CCOP approved the sale of the HBFC through a negotiated transaction with Pakistan Mortgage Refinance Company Limited (PMRCL), the single pre-qualified bidder.
The committee also approved the transfer of Services International Hotel (SIH) to the buyer after two years of privatization. The Privatisation Commission provided updates on the privatization process of the Roosevelt Hotel. The CCOP deferred the decision on appointing a financial adviser for the hotel’s privatization, pending consultation with the aviation ministry.
The CCOP decided to allow the Privatisation Commission to proceed with a single source and a negotiated transaction with Pakistan Mortgage Refinance Company Limited (PMRCL) for the privatisation of HBFC, according to the finance ministry.
HBFC has been on the active privatisation list since 2018. Four parties had shown interest in acquisition. Two foreign bidders, ICD-Islamic Development Bank and IFIC Bangladesh, subsequently did not show interest in the transaction. The State Bank of Pakistan did not clear the third bidder, Pakistan Housing Finance Company, due to its “non-compliance status”.
