ISLAMABAD: Pakistan Mortgage Refinance Company (PMRC) and Pakistan Housing Finance Company (PHFC) on Tuesday were prequalified to acquire House Building Finance Company Ltd (HBFCL).

The meeting of the Privatisation Commission Board (PCB), chaired by Abid Hussain Bhayo, approved the recommendations of the prequalification committee to give a go-ahead to the two potential buyers to start due diligence of HBFCL.

The board in a press release issued after the meeting said that HBFCL had been part of the active privatisation list since 2018 and its transaction structure was approved in 2020 with 100pc equity divestment along with management control.

HBFCL will continue to operate as a development finance institution regulated by the State Bank of Pakistan after privatisation. It will also be allowed to diversify its product portfolio to include other products such as SME financing, consumer financing, leasing and asset-based financing up to 30pc of the funds available for deployment.

The chief executive officer apprised the PCB meeting about the HBCFL performance and elaborate upon future initiatives.

The board while appreciating the proposal suggested that the potential buyer may be given the choice to introduce reforms as per its business plan and requirements.

Published in Dawn, March 22nd, 2023