ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) has endorsed the Privatisation Commission’s decision to proceed with the privatisation of the House Building Finance Company (HBFC) and has also recommended the inclusion of the outsourcing of Islamabad Airport through the Privatisation Commission.
The CCoP took these decisions at its meeting held here on Tuesday, chaired by Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar. The committee reviewed the privatisation process of various state-owned entities.
An official statement said that the committee endorsed the decision of the Privatisation Commission to go for a second cycle of the privatisation for the HBFC. It also recommended the inclusion of the outsourcing of Islamabad Airport through the PC.
Ishaq Dar emphasized that sponsoring ministries and the PC must ensure fair market valuation, reflecting both assets and future business prospects. He reiterated that privatisation would encourage private-sector investment and enable entities to adapt more swiftly to market dynamics.
The meeting was attended by Finance Minister Muhammad Aurangzeb, Minister for Power Awais Leghari, SAPM Haroon Akhtar, SAPM Tariq Bajwa, Secretary Cabinet, Secretary Privatisation, Secretary Law Division, Secretary Industries, and other high level officials.
In January, the government paused the first cycle of the privatisation of the state-owned housing finance giant, after receiving a single bid of Rs4.2 billion from the Pakistan Mortgage Refinance Company, which was significantly below the reference price of Rs13.55 billion. The process is expected to restart and may involve a strategic merger with Zarai Taraqiati Bank Limited (ZTBL).
Some proposals call for HBFC-ZTBL merger to combine rural and urban financing, making the two entities a “Full-Stack” Development & Commercial Bank.
The original plan is aimed at 100% divestment of management control, as outlined by the Privatisation Commission, with a focus on diversifying the giant into SME and consumer financing entity.
Despite the delay, the government remains committed to the privatisation of state-owned enterprises, including HBFC, as part of its economic agenda, which enjoys the support of international financial institutions.
Copyright Business Recorder, 2026
Comments