Govt halts HBFCL deal, reopens Roosevelt Hotel privatisation

According to an official statement, the board reviewed the privatisation of key state-owned assets, with detailed discussions on House Building Finance Company Limited (HBFC) and the Roosevelt Hotel.

The board recommended terminating the ongoing negotiated process for the privatisation of a 51 percent shareholding in HBFC, noting that Pakistan Mortgage Refinance Company remained the sole bidder throughout the process.

It was observed that against an approved reference price of Rs13.55 billion, a bid of only Rs4.2 billion was submitted. In view of the significant gap, the board advised that the privatisation process for HBFC should be restarted from scratch.

On the Roosevelt Hotel, the board decided to cancel the ongoing process for hiring a financial adviser. It directed that fresh expressions of interest be invited for the appointment of a new adviser, citing limited competition after the screening process reduced the number of interested parties from seven to just two.

The board also recommended including New Islamabad International Airport in the privatisation programme. In this regard, the Privatisation Commission was authorised to engage with the Asian Development Bank for a financial advisory agreement.

Additionally, the board approved the establishment of a transaction committee for the privatisation of Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO) as part of the second batch of power distribution companies slated for privatisation.

The meeting reflected the government’s intent to reassess major privatisation transactions to ensure transparency, realistic valuations, and stronger investor participation.

Pakistan Mulls Demolishing Roosevelt Hotel

On October 06, 2025, Pakistan was exploring options for its PIA-owned Roosevelt Hotel in New York City, including the possibility of demolishing the iconic landmark and constructing a skyscraper in its place.

This move was part of Islamabad’s broader strategy to meet its commitments to the International Monetary Fund (IMF), according to a report by Bloomberg.

The 1,025-room hotel, located in midtown Manhattan, was shuttered in 2020 due to significant revenue losses caused by the COVID-19 pandemic. For a brief period in 2023, it served as temporary accommodation for migrants before being closed again.

Speaking to Bloomberg in Islamabad, Adviser to the Prime Minister on Privatisation and Chairman Privatisation Commission, Muhammad Ali, said the government was keen on a joint venture where Pakistan will contribute the land and the partner will bring in the equity. The other option is to retain the hotel if it makes economic sense, he said.

“We will have clarity on this in the next few months after finalization of the JV partner and market sounding,” he said.