KPMG-led consortium hired for House Building Finance Corporation Limited privatisation

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This will be the second attempt to privatise the state-owned HBFCL. —Dawn/File
This will be the second attempt to privatise the state-owned HBFCL. —Dawn/File

ISLAMABAD: The Privatisation Commission on Sunday signed a Financial Advisory Services Agreement (Fasa) with a consortium led by accounting firm KPMG for the privatisation of the House Building Finance Corporation Limited (HBFCL).

In an announcement, the commission said the consortium also comprised corporate finance advisory company Bridge Factor, legal firm Haidermota & Co., human resource firm HRSG and Asiatic Public Relations to handle media affairs.

“The consortium brings together established expertise in financial advisory, transaction structuring and execution to support the Privatisation Commission in taking the HBFCL privatisation process forward,” the statement said.

This would be the second attempt to privatise the state-owned HBFCL.

In the previous attempt, only a single bidder, Pakistan Mortgage Refinance Company Limited (PMRCL), was pre-qualified.

Financial adviser to conduct due diligence, valuation and support transaction execution

However, the privatisation could not be successfully concluded as the bid submitted was rejected by the Privatisation Commission for being lower than the reference price approved by the federal cabinet.

In February this year, the Cabinet Committee on Privatisation endorsed moving forward with a revised framework, which has also involved evaluating structural options like potential synergies or integration paths with other state financial entities like Zarai Taraqiati Bank Limited.

‘Operational efficiency’

Under the current agreement, the financial adviser will “undertake comprehensive due diligence of the HBFCL, advise on an optimal transaction structure, conduct valuation, and support the Privatisation Commission throughout the marketing and execution of the transaction”.

The commission expects the privatisation of HBFCL to “contribute to the development of Pakistan’s housing finance sector by leveraging private-sector expertise, improving governance and operational efficiency, and facilitating greater access to housing finance”.

“A stronger and more competitive HBFCL can help expand financing opportunities, particularly for low- and middle-income households, and support the government’s broader objective of promoting affordable housing in the country,” the Privatisation Commission said.

It added that the commission would work closely with the financial adviser and relevant stakeholders to ensure that the transaction progresses in accordance with the approved process and established regulatory requirements.

Published in Dawn, August 10th, 2026

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