Pakistan hires financial adviser for HBFCL privatization

Pakistan has begun a fresh attempt to privatize the House Building Finance Company Limited (HBFCL), with the Privatization Commission (PC) appointing a consortium led by KPMG as its financial adviser.

The consortium includes corporate finance advisory firm Bridge Factor (a Corporate Finance Advisory firm), Haidermota & Co. (a legal firm), HRSG (an HR Firm) & Asiatic Public Relations (a media PR firm).

Under the Financial Advisory Services Agreement (FASA), the consortium brings together established expertise in financial advisory, transaction structuring and execution to support the Privatization Commission in taking the HBFCL privatization process forward.

This would be the second attempt to privatize House Building Finance Company Limited (HBFCL), reflecting a renewed effort by the Privatization Commission.

The previous process ended without a successful sale after Pakistan Mortgage Refinance Company Limited (PMRCL) emerged as the only pre-qualified bidder. The Privatization Commission rejected its offer because it was below the reference price approved by the federal cabinet.

Under the agreement, the Financial Advisor will undertake comprehensive due diligence of HBFCL, advise on an optimal transaction structure, conduct valuation, and support the Privatization Commission throughout the marketing and execution of the transaction.

The privatization of HBFCL is expected 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 Privatization Commission will continue to work closely with the Financial Advisor and relevant stakeholders to ensure that the transaction progresses in accordance with the approved process and established regulatory requirements.