Pakistan has taken a fresh step toward the privatization of the House Building Finance Company Limited (HBFCL), appointing a consortium led by KPMG as financial adviser for the transaction.
The Privatisation Commission signed a Financial Advisory Services Agreement with the KPMG-led consortium, formally restarting efforts to sell the state-owned housing finance institution. The appointment comes after previous attempts to privatize HBFCL failed to reach completion.
The consortium will advise the government throughout the privatization process, including transaction structuring, valuation, investor engagement and other key steps required to move the company toward a potential sale.
HBFCL is Pakistan’s specialized housing finance institution and has a nationwide network serving customers seeking financing for home construction and purchase. The company was established in 1952 and was corporatized in 2007. According to the Privatisation Commission, the State Bank of Pakistan holds a 90.31% stake, while the federal government owns the remaining 9.69%.
The government has previously sought to privatize HBFCL, including plans involving the sale of a majority stake along with management control. However, the earlier process did not result in a completed transaction.
The renewed initiative comes as Islamabad continues its broader privatization programme aimed at reducing the financial burden of state-owned enterprises and attracting private-sector investment.
The appointment of a new financial adviser is expected to pave the way for a fresh assessment of HBFCL’s financial position and market value, followed by efforts to attract qualified domestic and international investors.
Officials will now work with the advisory consortium to determine the structure and timetable of the transaction. The success of the latest attempt will depend on investor interest, regulatory approvals and the government’s ability to resolve issues that affected earlier privatization efforts.
The development marks another important step in Pakistan’s efforts to reform and privatize state-owned entities. AArab News+1
Meta Title: Pakistan Hires Financial Adviser for HBFCL Privatization
Meta Description: Pakistan appoints a KPMG-led consortium as financial adviser for HBFCL privatization, restarting efforts to sell the housing finance company.