The government suspends the HBFCL agreement and reinitiates the privatisation of the Roosevelt Hotel.
ISLAMABAD: The Privatisation Commission Board, led by the Adviser on Privatisation, convened a significant meeting in Islamabad to evaluate and make critical decisions regarding several major privatisation transactions, including the House Building Finance Company Limited (HBFC) and the Roosevelt Hotel.
The board examined the privatization of significant state-owned assets, focusing on the House Building Finance Company Limited (HBFC) and the Roosevelt Hotel.
The board advised discontinuing the current negotiation for the privatization of a 51 percent stake in HBFC, observing that Pakistan Mortgage Refinance Company was the only bidder during the entire process.
A bid of Rs4.2 billion was submitted, in contrast to the sanctioned reference price of Rs13.55 billion. Given the substantial disparity, the board recommended that the privatisation process for HBFC be initiated anew.
The board of the Roosevelt Hotel resolved to terminate the current process for appointing a financial adviser. It mandated the solicitation of new expressions of interest for the appointment of a new adviser, alleging insufficient competition after the screening procedure diminished the number of interested parties from seven to merely two.
The board has suggested include New Islamabad International Airport within the privatization initiative. The Privatisation Commission was empowered to collaborate with the Asian Development Bank for a financial advice arrangement.
The board also sanctioned the formation of a transaction committee for the privatisation of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), as part of the second group of power distribution businesses designated for privatisation.
The meeting demonstrated the government’s intention to reevaluate significant privatization contracts to guarantee openness, accurate valuations, and enhanced investor engagement.
Pakistan Considers the Demolition of Roosevelt Hotel
On October 6, 2025, Pakistan was considering alternatives for its PIA-owned Roosevelt Hotel in New York City, including the potential demolition of the famous structure to facilitate the construction of a skyscraper in its stead.
This action was integral to Islamabad’s overarching goal to fulfill its obligations to the International Monetary Fund (IMF), as reported by Bloomberg.
The 1,025-room hotel in midtown Manhattan was closed in 2020 because to substantial revenue declines resulting from the COVID-19 epidemic. In 2023, it functioned as provisional housing for migrants before its subsequent closure.
In an interview with Bloomberg in Islamabad, Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, stated that the government is interested in a joint venture in which Pakistan will provide the land and the partner will supply the equity. He stated that the alternative is to maintain the hotel if it is financially viable.
“We will attain clarity on this matter in the forthcoming months following the finalization of the joint venture partner and market assessment,” he stated.