Govt sells Lahore’s Services Hotel for Rs1.95bn

ISLAMABAD: After a delay of over three years, the government on Friday completed the sale of Lahore’s Services International Hotel (SIH) for Rs1.951 billion, concluding a long-standing privatisation process.

The deal was finalised with the signing of a sale agreement between the buyer and the government, following the disposal of a legal case by the Lahore High Court (LHC) in September 2024.

The SIH property, which spans 15 Kanal, 3 Marla, and 113 square feet (7,585 square yards) on Upper Mall Road in Lahore, includes a four-story building with a built-up area of 93,850 square feet. The Lahore Development Authority (LDA) had approved the property for commercial use, allowing for the development of various asset classes.

The privatization process began with a public auction held on August 26, 2021, in which M/s Faisal Town (Private) Limited emerged as the highest bidder. The federal cabinet approved the transaction on October 27, 2021, and the relevant permissions and documentation were completed later that year, culminating in the issuance of the Letter of Award (LoA) on November 2, 2021. The buyer made the full payment on January 6, 2022, but delays ensued due to legal and procedural hurdles.

Notably, in December 2021, the Punjab Cooperative Board for Liquidation (PCBL) filed a legal challenge before the Lahore High Court, leading to the case’s delay. The legal battle, involving various parties including M/s Civic Centre Company Limited (CCCL), the LDA, and the Privatization Commission, was resolved when the Lahore High Court disposed of the case on September 20, 2024.

Federal Minister for Privatization, Abdul Aleem Khan, attended the signing ceremony and hailed the deal as a milestone in Pakistan’s privatization efforts.

“The successful privatization of Services International Hotel will enhance the credibility of the Privatization Commission,” Khan said. “This achievement will pave the way for the timely completion of other cases, ensuring we meet our privatization objectives efficiently.”

Khan also emphasised the need for a business-friendly environment and reducing bureaucratic delays in future privatizations. “We must work collectively to attract private sector investment and revitalize under performing state assets,” he said.

The sale of SIH is seen as a significant step in Pakistan’s ongoing efforts to reduce the burden of loss-making public enterprises and encourage private sector involvement in the economy. The transaction is expected to set a benchmark for future privatization deals.