ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on Monday allowed the Privatization Commission to proceed to complete privatisation of Services International Hotel and House Building Finance Corporation (HBFC).

A meeting of the CCoP, chaired by Finance Minister Ishaq Dar, deferred a summary presented by the Privatisation Commission on the privatisation of PIA-owned Roosevelt Hotel in New York and asked the commission to submit an update on the status after consultation with the aviation ministry.

Aviation Minister Khwaja Saad Rafique had disclosed a few weeks ago that a contract has been signed with the New York city government to operate Roosevelt Hotel for three years. The agreement is expected to fetch $220 million, he said.

CCoP seeks update on status of Roosevelt Hotel sell-off

As per a cabinet decision, the commission in consultation with the aviation ministry has developed terms of reference for a consortium to advise the government on the leasing of Roosevelt site for prospective mixed-use development through the best suited mode of privatisation.

The Privatization Commission submitted a summary regarding privatisation of Services International Hotel (SIH) and updated the CCoP on its privatisation process. The committee after detailed discussion allowed the Privatisation Commission to proceed towards successful conclusion of SIH transaction with completion of transfer process in the name of the purchaser.

The commission also presented a summary on privatisation of HBFC with one single (pre-qualified) bidder. After detailed deliberations, the CCoP decided to allow the Privatization Commission to proceed with single source/negotiated transaction for privatisation of HBFC with sole pre-qualified investor, namely Pakistan Mortgage Refinance Company Ltd (PMRCL).

Published in Dawn, July 11th, 2023