Pakistan Privatisation Commission Advances Airport Privatisation, Reconsiders Other Transactions
Islamabad – The privatisation Commission board convened on Friday adn approved the inclusion of Islamabad International Airport in the national privatisation program. The board also initiated a process to appoint a financial advisor by inviting fresh expressions of interest (EoIs), aiming for a more competitive bidding landscape.
Chaired by Muhammad Ali, Advisor to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, the meeting determined that a concession model, implemented through an open and competitive process, would be pursued for the airportS privatisation. This decision follows a January 1st ruling by the Cabinet Committee on Inter-Governmental commercial Transactions (CCoIGCT) against a goverment-to-government transaction approach. The Commission has been authorised to begin direct negotiations with the Asian Development Bank (ADB) regarding their potential role as financial advisor for this meaningful transaction.
The move to solicit new EoIs comes after an initial screening process reduced the pool of interested parties from seven to just two, based on legal and technical compliance criteria. Commission officials stated the revised approach is intended to foster a “more robust and competitive process.”
In other decisions, the board recommended terminating the ongoing negotiated sale of a 51% stake in the house Building Finance Company Ltd (HBFCL). The sole bidder, Pakistan Mortgage Refinance Company (PMRCL), submitted a bid of Rs4.2 billion, considerably below the Rs13.55 billion reference price previously approved by the Cabinet committee on Privatisation. The board has recommended restarting the HBFCL privatisation process with the appointment of a new financial advisor.
Furthermore, the board approved the formation of a transaction committee dedicated to the privatisation of Hyderabad Electric Supply Company (Hesco) and Sukkur Electric Power Company (Sepco).
Thes developments signal a continued push by the Pakistani government to advance its privatisation agenda, seeking to attract investment and improve operational efficiency across key sectors.