Govt approves sale of HBFC to mortgage refinance firm

ISLAMABAD: The Cabinet Committee on Privatization (CCoP) on Monday approved sell-out of House Building Finance Corporation (HBFC) to a single source/negotiated transaction.

The pre-qualified single bidder Pakistan Mortgage Refinance Company Limited has been named as the single bidder for the HBFC transaction.

The CCOP discussed the issue and deferred in the summary. Secretary PC vide letter dated 13 Jun 2023 has requested Aviation Division to confirm whether PC may continue with the process for appointment of financial adviser and the reported lease of the facility will not impede privatisation process and timelines, response is awaited.”

Since aviation was not in the meeting, CCoP directed that a joint summary be submitted by privatisation and aviation on timelines and way forward. Currently, the government has struck leasing agreement of renting out rooms of the hotel and keeping in view the decreased property prices it is not the ripe time for selling out Roosevelt Hotel.

The Cabinet Committee on Privatization (CCoP) under Chairmanship of Minister for Finance Ishaq Dar granted approval to proceed towards successful conclusion of Services International Hotel (SIH) Lahore with completion of transfer/ mutation process in the name of purchaser M/S Faisal Town Pvt Limited.

According to official announcement made by Ministry of Finance, the Privatization Commission submitted a summary regarding privatization of Services International Hotel (SIH) and updated the committee on its privatization process. The CCoP after detailed discussion allowed Privatization Commission to proceed towards successful conclusion of SIH transaction with completion of transfer/mutation process in the name of the purchaser.

The Privatisation Commission tabled a summary related to budget estimates of the commission for FY 2023-24 to the tune of Rs1248.8 million. The CCoP after detailed deliberation approved the summary.

The commission also presented summaries on privatisation of Pakistan Engineering Company (PECO) and privatization of Sindh engineering Limited (SEL) and briefed the meeting on their status. The CCoP after discussion deferred both the summaries with directions that the secretary Privatization Commission, secretary Law & Justice and secretary Industries & Production may hold mutual consultations and come up with future course of action in both cases.