HBFCL, PIACL and airports: Major decisions made on selloffs

ISLAMABAD: The Privatization Commission’s Board met here on Friday under the chairmanship of Muhammad Ali, Adviser to the Prime Minister on Privatisation and made some major decisions regarding the ongoing privatisation initiatives of the House Building Finance Company Limited (HBFCL), Pakistan International Airlines Corporation Limited (PIACL) and the management of three international airports in Islamabad, Lahore, and Karachi.

The Board recommended a reference price for the privatisation of the HBFCL, along with the terms of the Sale Purchase Agreement, for submission to the Cabinet Committee on Privatisation (CCoP). The company is being privatised through a negotiated sale to the Pakistan Mortgage Refinance Company Limited (PMRCL), which has been pre-qualified as a bidder.

The CCoP and the Federal Cabinet had previously approved the proceeding with a negotiated sale to a single pre-qualified bidder in July 2023. The PMRCL has submitted its bid, which will be opened after the approval of the reference price by the CCoP and its ratification by the Cabinet.

The Board also approved the inclusion of AKD Group Holdings (Pvt.) Ltd in the consortium led by Arif Habib Corporation Limited (AHCL), upon the consortium’s request. This inclusion is permissible under the conditions stipulated in the Statement of Qualifications (SOQ). The AHCL consortium is among the four pre-qualified parties participating in the privatisation process of PIACL.

Furthermore, the Board recommended to the CCoP the inclusion of the management of three international airports – Islamabad, Lahore, and Karachi – in the ongoing privatisation programme. Under this initiative, airport management will be offered on a long-term concession basis.

The Board reaffirmed its strong commitment to implementing the government’s privatisation agenda with efficiency, transparency, and strategic focus. Members expressed a collective resolve to overcome past challenges and to ensure the timely and successful completion of ongoing transactions in line with the Government of Pakistan’s reform objectives.