The Privatisation Commission Board, chaired by the Adviser on Privatisation, met in Islamabad to review and decide on several high-profile privatisation transactions. The agenda focused on state-owned assets, including House Building Finance Company Limited and the Roosevelt Hotel.
During the meeting, the board reviewed the proposed sale of a 51 percent stake in HBFC. Members noted that the Pakistan Mortgage Refinance Company remained the sole bidder throughout the negotiated process. Against an approved reference price of Rs13.55 billion, the bidder offered Rs4.2 billion. Due to this wide gap, the board recommended ending the current process and restarting HBFC’s privatisation with a fresh approach.
The board also addressed the future of the Roosevelt Hotel in New York. It cancelled the ongoing process to hire a financial adviser and directed officials to invite fresh expressions of interest. After screening, only two firms remained from an initial pool of seven, which limited competition. The board stressed the need for broader participation before moving forward.
In another key decision, the board recommended adding New Islamabad International Airport to the privatisation programme. It authorised the Privatisation Commission to engage with the Asian Development Bank for a financial advisory agreement.
Read: Pakistan Secures Seven Bids for Roosevelt Hotel Privatization
The board also approved the formation of a transaction committee to oversee the privatisation of Hyderabad Electric Supply Company and Sukkur Electric Power Company. These utilities form part of the second batch of power distribution companies slated for privatisation.
Officials said the review reflected the government’s focus on transparency, realistic valuations, and stronger investor interest across major transactions.
Roosevelt Hotel options under review
In October 2025, Pakistan explored multiple options for the Roosevelt Hotel, which is owned by Pakistan International Airlines. The government considered redeveloping the property, including demolishing the existing structure and constructing a new skyscraper. This strategy aligned with commitments made to the International Monetary Fund, according to reports.
The 1,025-room hotel in midtown Manhattan closed in 2020 after heavy losses during the COVID-19 pandemic. It briefly reopened in 2023 to house migrants before closing again.
Adviser to the Prime Minister on Privatisation, Muhammad Ali, said the government prefers a joint-venture model. Under this plan, Pakistan would contribute the land while a private partner would provide equity. He added that the government would retain the hotel only if it proves economically viable.
“We expect clarity in the coming months after market sounding and the selection of a joint venture partner,” he said.
